Can Bitcoin Price Fall to Zero? Chinese State-Run Media Warns
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- Central Committee of the Communist Party of China has direct control over the national newspaper.
- The article warns investors to be wary of bitcoin prices “moving towards zero” due to the recent crypto market selloff.
- El Salvador’s president, Nayib Bukele, bet the country’s economic salvation on bitcoin.
Bitcoin is already on a bearish run, and the latest news from a Chinese state-run newspaper adds further bearish pressure on BTC. The newspaper published a report warning that the price of bitcoin will fall to zero amid a crypto market selloff. Meanwhile, Shenzhen financial regulators have issued a new warning about cryptocurrency. A state-run newspaper warns that bitcoin will be worthless.
According to the SCMP, China’s state-run newspaper Economic Daily published a warning about bitcoin. The Central Committee of the Communist Party of China has direct control over the national newspaper. The article warns investors to be wary of bitcoin prices “moving towards zero” due to the recent crypto market selloff.
“Bitcoin is nothing more than a string of digital codes. Its returns are largely derived from buying low and selling high,” according to the newspaper’s description:
Bitcoin will revert to its original value, which is entirely worthless. Well, that’s likely once investor trust is lost or sovereign countries outlaw bitcoin.
New Cryptocurrency Caution from Chinese Regulators – Bitcoin News
The Financial Regulatory Bureau of Shenzhen, the Shenzhen Central Sub-branch of the People’s Bank of China, and the Shenzhen Development and Reform Commission warned investors about illegal financial activities involving cryptocurrencies and how to avoid being scammed.
The notice states that trading and speculation in virtual currencies “seriously endanger” the safety of people’s property and foster unauthorized fundraising, fraud, Ponzi schemes, money laundering, and other criminal and illegal activities. It also asserts that they disrupt the economic and financial order of the nation.
The financial authorities cited a statement issued by China’s central bank, the People’s Bank of China (PBOC), and ten ministries and commissions in September of last year asserting that virtual currency is not legal tender but also related financial activities are illegal.
Nayib Bukele Bitcoin Gamble Hasn’t Paid-off
El Salvador’s president, Nayib Bukele, bet the country’s economic salvation on bitcoin, but the gamble has not paid off as hoped.
The government’s crypto reserves have been cut in half, bitcoin adoption is lagging, and the country urgently needs cash to meet its debt obligations of over $1 billion over the next year. This comes as the price of bitcoin has decreased by more than 70 percent since its peak in November 2021, and more than 55 percent since Bukele announced his plan.
Meanwhile, El Salvador’s economic growth has slowed, its deficit remains high, and the country’s debt-to-GDP ratio — a key metric used to compare what a country owes to what it generates — is projected to reach nearly 87 percent this year, fueling concerns that El Salvador will be unable to meet its loan obligations.
Lack of Regulations Contributes Highly Leveraged Market
According to the newspaper, the lack of regulation in Western countries such as the United States has created a highly leveraged market “full of manipulation and pseudo-technology concepts.” According to the article, it is a “significant external factor” contributing to the volatility of bitcoin.
The warnings issued by state-run media reflect Beijing’s firm stance against cryptocurrency and related activities, which the government has outlawed. Chinese regulators have issued a new warning about cryptocurrency.
Investors should be cautious of crypto-related illegal financial activities and how. This warning came from the Shenzhen Financial Regulatory Bureau, the People’s Bank of China’s Shenzhen Central sub-branch, and the Shenzhen Development and Reform Commission. It would help if you avoided being taken advantage of.
According to the notice, virtual currency trading and speculation “seriously endangers” people’s assets. That along with race betting, illegal fundraising, fraud, pyramid schemes, money laundering, and other illegal and criminal activities. It also claims they are causing havoc on the country’s economic and financial systems.
Virtual currency is not legal tender and that related activities are illegal financial activities. The declaration came from the People’s Bank of China (PBOC), and ten ministries and commissions in September last year.
