Today, we are covering the China Bitcoin prediction, which comes after the fact that crypto banned in China, and will answer how low will Bitcoin go.
After a long period of bearishness, during which its primary asset, Bitcoin (BTC), briefly fell below $19,000 before recovering over the $20,000 mark, China’s warnings about Bitcoin’s future are becoming more pessimistic. If you want tips on how to invest in a bearish market, be sure to check out our article on the subject.
China Bitcoin prediction claims it is “heading to zero”
After the devastation of the crypto market, a media outlet controlled by China’s ruling Communist Party, published an article on June 22, warning investors about the danger of Bitcoin prices “heading to zero,” according to South China Morning Post. According to the article:
“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high. (…) In the future, once investors’ confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless.”
How low will Bitcoin go?
At the time of this writing, Bitcoin was trading at $20,478, a 3.58% decline over the previous seven days, according to data from CoinMarketCap, with some experts predicting that Bitcoin would fall back to around $10,000.
Crypto banned in China
It’s worth noting that the statement issued by the Chinese government’s state-operated media reflects the country’s hostile approach to cryptocurrencies, which culminated in a successful crypto ban that was implemented in stages, starting with May 2021.
In June 2021, the government outlawed all domestic crypto mining while completely prohibiting digital currencies in September, citing environmental and public safety concerns. Despite the notorious shutdown, relevant data shows that dozens of reachable nodes helping to protect the Bitcoin network are still operational in China. In May, when the China ban was first announced, the traffic from China accounted for about 20% of Bitcoin’s overall hash rate from September 2021 to January 2022. In July, it went to zero, in response to the restriction.
We hope that you enjoyed this article on the China Bitcoin prediction. If you did, you might also like to check out our other articles, such as what is the Terra Luna crash’s effect on Tether, Bitcoin, and other cryptocurrencies, or the top Web3 crypto coins.