After falling below $ 18,000 over the weekend, many expected Bitcoin to fall further to lower levels. However, the cryptocurrency managed to recover and stay above $ 20,000 for the week. Despite this commendable resistance, the Chinese state media Economic Daily believes that the current bear market could mean the end of Bitcoin and send the price into nothing.
The anti-crypto communists
Since 2021, China has adopted a very hostile policy towards cryptocurrencies as it develops its own digital central bank currency, e-CNY. In 2021, the country first banned cryptocurrency mining and then decided to ban all cryptocurrency transactions.
And today, when the cryptocurrency ecosystem is in crisis, the value of large cryptocurrencies like Bitcoin or Ethereum is falling, and Beijing is pushing for this.
According to the South China Morning Post, the Economic Daily, a media directly controlled by China’s Communist Party, recently warned investors that the value of Bitcoin will continue to fall and that the cryptocurrency will eventually become worthless.
“Bitcoin is nothing more than a series of digital codes, and its returns come primarily from buying low and selling high,” the newspaper said. “In the future, when investor confidence declines, or when sovereign states declare bitcoin illegal, it will return to its original value, which is completely worthless.”
The Economic Daily also reported that the crypto market is fraught with fraud, manipulation and pseudo-technical concepts and should be banned globally.
The media view of this market is not surprising as it easily reflects Beijing’s anti-crypto stance. As a reminder, the Chinese government banned cryptocurrencies and all related activities last year. Mine bans on Bitcoin and other cryptocurrencies have also led to massive relocation of mining companies to other countries.
Chinese media are trying to convey the message of the government
The TerraUSD debacle has already been used by Communist Party media to justify Beijing’s crypto ban. And today, as the cryptocurrency crisis continues, the newspaper has put forward new arguments to deter Chinese people from engaging in activities involving cryptocurrencies.
Like public authorities, local platforms are beginning to scrutinize the use of cryptocurrencies and related assets. WeChat, the leading social media platform in China, has decided to follow up with its latest update. This means that accounts promoting cryptocurrencies and NFTs will be restricted or banned and then marked as illegal businesses.
However, China’s efforts to ban cryptocurrencies proved futile as it again became the second largest contributor to Bitcoin’s hash rate after the United States.
Along with clear evidence of violations of the mining ban, the latest report suggests that drug smugglers are using cryptocurrencies more in China.
In fact, according to the South China Morning Post, even though China has banned cryptocurrency-related activities, enthusiasts have found ways around the ban. The media in Hong Kong cited the example of the OKX platform, a cryptocurrency exchange whose 9% of its web traffic still comes from China.
The economic daily, which is a propaganda tool for the Chinese authorities, is now involved in the latter’s fight against cryptocurrencies.
His analysis of the current bear market is clearly aimed at convincing local investors to dump their Bitcoin positions. It could also be a tactic to encourage them to switch to the digital yuan.