Bitcoin up 36% YoY after China warned BTC was ‘heading to zero’
Despite warning about Bitcoin’s “worthlessness,” China has apparently never prohibited its citizens from HODLing the cryptocurrency.
The government of China had been trying hard to make people believe that Bitcoin (BTC) would become worthless, but its predictions to date have been far off the mark. The original crypto currency has gained as much as 36% since official statements a year ago that it would become worthless.
Amid a wild bear market of 2022, the Chinese government attempted to capitalize on a massive market decline, warning crypto investors that Bitcoin prices were “heading to zero.”
Exactly one year ago, the Chinese national news media agency Economic Daily issued a warning about Bitcoin, in an effort to assure citizens that BTC was a worthless “string of digital codes.”
“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,” the article read.
While it’s yet to be seen whether Bitcoin is heading to zero one day, Bitcoin has not lost any value since the Chinese government made the warning. On the contrary, Bitcoin has significantly increased since the article was published.
According to data from CoinGecko, Bitcoin traded at around $20,000 by the time the Economic Daily released the article in June 2022. Twelve months later, BTC is trading at $28,852, up around 36% at the time of writing.
Despite posting notable gains, Bitcoin has seen its ups and downs over the past year. The largest cryptocurrency by market cap dropped to as low as $15,700 in November 2022. Then, in April 2023, Bitcoin briefly crossed the $30,000 price mark.
Related: Hong Kong’s regulatory lead sets it up to be major crypto hub
China was one of the first countries in the world to take regulatory action against crypto. In 2017, Chinese regulators banned cryptocurrency exchanges from providing services in the country. Despite the ban, Bitcoin continued to hit its all-time highs, surging 1,900% all the way up to $20,000 by the end of 2017.
In 2021, China’s central bank announced a new ban on crypto, uniting forces with various Chinese authorities in order to crack down on local crypto activity. Just a few months after the ban was announced, Bitcoin hit its all-time highs at around $68,000 in November 2021.
Despite “banning” crypto in 2021, China has remained the second-largest Bitcoin miner in the world. The Chinese government also apparently allows citizens to own cryptocurrency and protects the rights of crypto investors.
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