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For years, we’ve been reading that Bitcoin has died or ended with every market downturn. The situation was no different during the last bear market. The sales that accelerated in June of last year caused the price to hit rock bottom in the second half. After hitting its last low at $15,500, Bitcoin increased by approximately 100% and is now targeting its annual peak again.
Bitcoin Isn’t Dead
The Chinese government has worked hard to convince people that Bitcoin will devalue, but their negative predictions over the years have never come true. They hoped Bitcoin would go to zero, but it didn’t. During the wild bear market of 2022, the Chinese government attempted to profit from a significant market downturn by warning crypto investors that Bitcoin prices were “heading to zero.”
Exactly one year ago, China’s national news agency, Economic Daily, issued a warning about Bitcoin with the intention of convincing citizens that BTC was a worthless “digital code string.” The article stated, “In the future, when investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is completely worthless.”
While it is still uncertain whether Bitcoin will ever drop to zero, Bitcoin has not lost any value since the warning from the Chinese government. On the contrary, Bitcoin has shown a significant increase since the publication of the article.
Cryptocurrencies Surprise
When Economic Daily published the article in June 2022, Bitcoin was trading at around $20,000. Twelve months later, BTC is trading at around $28,852, an increase of about 36%. China was one of the first countries in the world to take regulatory measures against crypto. Chinese regulators banned cryptocurrency exchanges from operating in the country in 2017. Despite the ban, Bitcoin continued to reach its all-time highs and reached $20,000 at the end of 2017, an increase of 1,900%.
In 2021, the Chinese Central Bank, in collaboration with various Chinese authorities, announced a new crypto ban aimed at obstructing local crypto activities. Just a few months after the announcement of the ban, Bitcoin reached its peak of $68,000 in November 2021.
Despite the Chinese crypto ban, the country remains a favorite of miners. Moreover, citizens in the country can invest in cryptocurrency and take advantage of the courts in case of disputes. On the other hand, Hong Kong has welcomed crypto companies, and as the Western trillion-dollar giants enter crypto, China is not remaining silent.
