China warns Bitcoin is heading for zero, but BoE looks optimistic

The Chinese government has taken advantage of the sharp decline in the crypto market by warning crypto investors that bitcoin prices are “trending to zero.”

South China Morning Post report On June 22, the Economic Daily, China’s state news media agency, issued a warning about the largest cryptocurrency by market capitalization, to further dissuade citizens from using cryptocurrencies.

“Economic Daily” reported that the West should create a Highly leveraged market That was “full of manipulation and pseudo-technical concepts,” which it said were “significant external factors” that contributed to Bitcoin’s volatility.

“Bitcoin is nothing more than a string of numbers, and its returns are largely driven by buying low and selling high,” the paper said.

“In the future, once investor confidence collapses, or sovereign states declare bitcoin illegal, it will return to its original value and be worthless.”

Government of china Ban Bitcoin Mining Last July, and laid out grand plans to launch its central bank digital currency (CBDC), called Digital RMB (e-CNY) Nationwide.it bans all cryptocurrencies trade last September, and Notorious ban on foreign cryptocurrency exchanges Started domestic operations in 2018.

The Chinese government isn’t the only one involved in predicting Bitcoin price movements.

On Monday, Tom DeMark, founder and CEO of market analysis firm DeMark Analytics Tell Marketwatch He believes the crypto market is in line with expectations long-term price reduction because bitcoin has fallen below 50% from a peak of $69,000 in November,

“This collapse shows that it will likely take many years, if not decades, for Bitcoin to recover to its all-time highs.”

However, it still has a chance to bounce back into the $40,000 range in the next few months, he said.

“This does not negate the prospect of a recovery of up to 50-56% in the next few months, which would imply a rally to $40,000-45,000 for Bitcoin.”

Contrary to Beijing’s warnings, the Bank of England (BOE) has started to see the upside potential of accumulating wealth in the cryptocurrency space during a bear market.

Jon Cunliffe, Deputy Governor of the Bank of England Bloomberg On June 22, cryptocurrency companies that managed to stay afloat during the current downturn could become the “dominant players” in the industry when things improve.

“No matter what happens to crypto assets in the coming months, I expect crypto and finance to continue to exist. It has the potential to bring about huge efficiencies and changes in market structure.”

Meanwhile, El Salvadoran President Nayib Bukele Solved the Bitcoin world On June 19, the price of BTC plummeted. He tweeted that people should “stop looking at the charts and enjoy life” as he believes prices will recover.

President Bukele has come under fire for investing in cryptocurrencies and has suffered tens of millions of dollars in losses so far, but Finance Minister Alejandro Zelaya has argued that it is not a loss “because we have not sold the tokens.”

related: Friday’s $2.25B Bitcoin Options Expiry May Prove $17.6K Isn’t BTC’s Bottom

As of this writing, BTC is trading at $20,386, down 71% from its highs and down 0.7% over the past 24 hours according to to CoinGecko.