Bitcoin market meltdown prompts fresh warning in China that value of world's leading cryptocurrency could fall to zero – Yahoo Finance

Bitcoin market meltdown prompts fresh warning in China that value of world's leading cryptocurrency could fall to zero – Yahoo Finance

Blockchain Crypto Market Technology
June 23, 2022 by Coinvasity
59
The global cryptocurrency industry’s latest meltdown has prompted fresh warning in China that the value of bitcoin could drop much further and be worth nothing, as Beijing renewed efforts to dissuade Chinese investors from all crypto-related activities.An article published on Wednesday by the Economic Daily, a newspaper directly under the Central Committee of the ruling
wp-header-logo-306.png

The global cryptocurrency industry’s latest meltdown has prompted fresh warning in China that the value of bitcoin could drop much further and be worth nothing, as Beijing renewed efforts to dissuade Chinese investors from all crypto-related activities.
An article published on Wednesday by the Economic Daily, a newspaper directly under the Central Committee of the ruling Chinese Communist Party, said investors should beware the risk of bitcoin prices “heading to zero” amid the recent decline of the world’s first and leading cryptocurrency.
“Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” the newspaper said. “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.”
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
The Economic Daily‘s latest write-up comes a month after it used as an example the collapse of stablecoins terraUSD and luna to justify China’s ban on cryptocurrency trading.
Bitcoin signage is displayed during the CoinDesk 2022 Consensus Festival in Austin, Texas, on June 9, 2022. The festival showcased activities of the cryptocurrency, blockchain, NFT and Web3 ecosystems. Photo: Bloomberg alt=Bitcoin signage is displayed during the CoinDesk 2022 Consensus Festival in Austin, Texas, on June 9, 2022. The festival showcased activities of the cryptocurrency, blockchain, NFT and Web3 ecosystems. Photo: Bloomberg>
The lack of regulation in Western countries, such as the United States, helped create a highly-leveraged market that is “full of manipulation and pseudo-technology concepts”, the newspaper said. It described that as an “important external factor”, which has contributed to bitcoin’s volatility.
The fresh warning from state-run media reflects Beijing’s firm stance against all cryptocurrency activities that the government has outlawed – including trading, fundraising and mining – as the global market saw popular digital tokens lose more than half their value.
Bitcoin resumed its slide on Wednesday, moving in tandem with weakening stocks amid mounting concerns about a global recession. It declined as much as 2.9 per cent to US$20,244. Ether, the world’s second leading digital token, fell 3.3 per cent to US$1,084.80.
The price of bitcoin tumbled to new low this year of US$17, 958.05 over the weekend, but posted a mild recovery to above US$20,000 on Monday. Bitcoin prices have fallen more than 50 per cent since the start of this year, while ether has dropped in value by more than 70 per cent.
Tightening monetary policies in Western economies have led to a global sell-off of a range of risk-laden assets, including cryptocurrencies, while a growing number of crypto lending platforms, hedge funds and stablecoin issuers are now mired in financial distress.
In a separate warning, the Financial Regulatory Bureau of Shenzhen said in a statement on Tuesday that cryptocurrency trading and speculation severely endanger people’s “property security”, breed criminal activities and disrupt financial order. It cautioned investors about being involved in illegal financial activities and to avoid being scammed.
The bureau cited a notice published in September last year by China’s central bank, which declared all cryptocurrency transactions illegal, singled out offshore exchanges that target mainland Chinese users and pledged to take action against citizens who market such illicit services.
Still, enthusiasts across the country are known to have found workarounds to skirt restrictions and stay active underground. That prompted the southern province of Guangdong last week to vow increased action against clandestine crypto-related activities.
On OKX, one of the world’s biggest cryptocurrency exchanges by trading volume, more than 9 per cent of its desktop web traffic on Wednesday came from China, according to data from web analytics firm SimilarWeb.
Topics related to cryptocurrencies, including bitcoin, have repeatedly become trending searches on Chinese microblogging service Weibo whenever major price drops occur.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.
Bitcoin found support this morning, as the market looks to shake off Fed Chair Powell’s testimony and market angst over the risk of a US recession.
Voyager Digital said its subsidiary may issue a notice of default to embattled crypto hedge fund Three Arrows Capital for failure to repay its loan.
It started a cryptocurrency investing opportunity that slid into George Kissi’s direct messages in late April. “I don’t know why I fell for that, other than greed,” Kissi, 49, told MarketWatch. What happened to Kissi is a cautionary tale that’s becoming common and costly, according to regulators.
A newly created chip start-up owned by the Shenzhen government has recruited a Japanese semiconductor industry heavyweight in the latest sign of China's ambition to take a bigger share of the global DRAM market dominated by US and South Korean players. Shenzhen SwaySure Technology, incorporated in March 2022 as part of the southern Chinese city's plan to become a semiconductor hub, last week named 74-year-old Yukio Sakamoto, former chief executive of Japanese DRAM maker Elpida Memory and more re
Rhetoric isn't enough: The president needs to act wherever he can to lower inflationary pressures
How much has Saquon Barkley potentially lost in the recent Bitcoin dive?
ALYONA MAZURENKO – WEDNESDAY, 22 JUNE 2022, 17:09 Ukrainian defenders have destroyed the "elite" units of the Western Military District of the Russian Federation, and the only survivors are soldiers who have refused to attack Ukraine.
"It’s really hard to love the things about yourself that maybe people don’t want you to love."
Talk of recession and mass unemployment is all over the news — and former Democratic Treasury Secretary Larry Summers is the chief reason why. He said the U.S. needs several years of high unemployment to get the worst inflation in 40 years back under control.
Bitcoin dropped below US$20,000 for the third time in a week on Thursday morning in Asia as news of record inflation in the U.K. and warnings of a recession hit crypto markets. See related article: Crypto on a roller coaster as market braces for Fed guidance on rates Fast facts Bitcoin was trading down 3.5% […]
After taking a Korean Air business class flight to South Korea from Hawaii, a passenger shared a photo of his underwhelming inflight meal which had a steak the size of a credit card. Looking forward to the inflight service, the man was taken aback when he saw his underwhelming meal. The man placed his credit card next to the meal to provide a visual comparison.
The real estate investment platform Fundrise announced that it recently acquired 146 rental homes in the Treeline Trails community of Jacksonville, Florida. The purchase was made by a joint venture between two Fundrise-sponsored funds, the Fundrise Interval Fund, which was backed by Goldman Sachs Group Inc (NYSE: GS) last year with a $300 million credit facility, and the Growth eREIT VII. The joint venture acquired the community for approximately $55.9 million and, according to Fundrise, approxi
The Canadian Purpose Bitcoin ETF lost half of its assets last Friday before bitcoin crashed, leading to ProShares’ futures-based BITO taking over the top spot as the largest bitcoin-focused ETF by assets, Arcane said in a note.
Georgia state Rep. Bee Nguyen (D, GA-89) is the official Democratic nominee for secretary of state in Georgia after she defeated former state Rep. Dee Dawkins-Haigler (D, GA-91) in the primary runoff on Tuesday. Nguyen, the daughter of Vietnamese immigrants, is set to face Republican incumbent Secretary of State Brad Raffensperger in the general election in November.
The conflict in Ukraine has “sounded an alarm for humanity,” Chinese leader Xi Jinping said Wednesday, as China continues to assume a position of neutrality while backing its ally Russia. China has refused to criticize Russia's war in Ukraine or even to refer to it as an invasion in deference to Moscow, while also condemning U.S.-led sanctions against Russia and accusing the West of provoking Moscow.
Burry’s not bullish. But he’s beginning to nibble.
Nearly 70% of company executives say they are “seriously considering quitting for a job that better supports their well-being,” according to a new report from Deloitte and market research firm Workplace Intelligence released Wednesday. The poll surveyed 2,100 employees and C-level executives in the United States, the United Kingdom, Canada and Australia in February. A smaller proportion employees (57%) also reported having the luxury of “seriously” considering quitting to take another job that supports their wellness.
Most cryptocurrencies fell today, as the intense selling from last week resumed due to most of the same concerns about the Federal Reserve's ongoing policies and the economy. Over the past 24 hours (as of 9:50 a.m. ET today), the price of the world's largest cryptocurrency, Bitcoin (CRYPTO: BTC), has traded more than 5% down, to roughly $20,780. The price of the world's second-largest cryptocurrency, Ethereum (CRYPTO: ETH), has traded nearly 7% down, and the price of the meme token Dogecoin (CRYPTO: DOGE) is down nearly 6%.
(Bloomberg) — Oil fell to its lowest in over a month amid growing concerns that a global economic slowdown will ultimately hobble demand. Most Read from BloombergThe World’s Bubbliest Housing Markets Are Flashing Warning SignsJuul Soon to Be Ordered Off the Market by FDA, WSJ ReportsElon Musk Says New Tesla Plants Are ‘Money Furnaces’ Losing BillionsStocks Snap Rally as Recession Fears Mount: Markets WrapPowell Says Soft Landing ‘Very Challenging;’ Recession PossibleWest Texas Intermediate slip
Houses literally used to cost $12,000. Like, goodbye Cheryl.View Entire Post ›

source

Add a comment