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Towards zero

The Chinese government has contributed to the violent decline in the crypto market by warning crypto investors that Bitcoin prices are "towards zero."

The South China Morning Post reported on June 22 that China's national news agency Economic Daily has issued a warning about the biggest cryptocurrency with a market cap to further deter citizens from using crypto.

An Economic Daily report states that the western world is to blame for creating the strongest market "full of deception and false technological ideas" that claimed to be "an important external factor" contributing to the volatility of Bitcoin.

"Bitcoin is nothing more than a series of digital codes, and its return is mainly due to low purchases and high sales," the newspaper said.

"In the future, if investor confidence diminishes or when the independent states declare Bitcoin illegal, it will return to its original value, which is useless."


The Chinese government banned Bitcoin mines last July and has plans to launch a central bank (CBDC) digital currency called the Chinese yuan (CNY) nationwide. It banned all cryptocurrency transactions last September, and shamefully closed the crypto foreign exchange transaction in 2018.

The Chinese government is not the only one that weighs in on the predictions about where they see the price of Bitcoin.

On Monday, the founder and CEO of DeMark Analytics market company Tom DeMark told Marketwatch that he believed the crypto market was on the verge of a long-term decline as BTC fell below 50% since its November high. 69,000,

"Such disruptions present a high probability that recovery at a high Bitcoin level will take many, if not decades, years to complete."

However, there is still a chance he can return to the $ 40,000 range in the next few months, he said.

"This does not contradict the prospect of a 50-56% recovery in the coming months, which means that bitcoin will return to $ 40,000- $ 45,000."

Contrary to Beijing's warnings, the Bank of England (BOE) has begun to see the potential for wealth creation in the crypto space during the bear market.

BOE Deputy Governor Jon Cunliffe told Bloomberg on June 22 that crypto firms that could stay active during the current downturn could become "outstanding players" in the industry as things change.

“No matter what happens in the next few months in crypto assets, I expect crypto technology and finance to continue. It has the potential for greater efficiency and changes in market systems. "

Meanwhile El Salvadoran President Nayib Bukele addressed the country of Bitcoin on June 19 about the decline in BTC prices. He wrote on Twitter that people should "stop looking at the graph and enjoy life," because he is confident the prices will recover.

President Bukele has been criticized for investing in cryptocurrency and keeping tens of millions in losses so far but Finance Minister Alejandro Zelaya has argued that it is not a loss "because we did not sell the coins."

As of the time of writing, BTC is trading at $ 20,386, 71% down from the top and 0.7% down 24 hours ago according to CoinGecko.

Source: cointelegraph

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