China's Dire Bitcoin Warning Broadcast
China's state media broadcast a severe warning: 'if Bitcoin succeeds, we will all die.' This declaration signals Beijing's concerns regarding the cryptocurrency's implications for national stability.
China's Anti-Crypto Stance: A Policy Timeline
Regulatory tightening began around 2013 with warnings to financial institutions against handling $BTC. In 2017, the People's Bank of China (PBOC) declared Initial Coin Offerings (ICOs) illegal and ordered domestic cryptocurrency exchanges to cease operations, ending regulated crypto trading for Chinese citizens. A crackdown on crypto mining followed throughout 2021, driven by environmental concerns and financial risks, leading to an exodus of mining operations. By September 2021, the PBOC issued a ban on all cryptocurrency-related transactions, declaring all virtual currency business activities illegal. This covered activities such as crypto trading, order matching, token issuance, and derivatives.
Market Response Amidst Dire Warnings
$BTC's price was observed at approximately $73,524, with a 2.5% increase over 24 hours and a 6.6% rise over seven days. Mindshare for $BTC also registered a 2.6% increase.
Trading volumes remained active: Coinbase Spot (USD Trades) recorded $65.48 million, Bybit Spot (USDT Trades) saw $22.98 million, and Binance Futures (USDT Trades) reported $13.69 million in $BTC volume.
Institutional investment continued, with one strategy adding 22,337 $BTC ($1.57 billion) at an average price of $70,194, bringing total holdings to 761,068 $BTC. BlackRock transferred 1,701 $BTC ($124.88 million) to Coinbase. Japanese firm Metaplanet announced raising $531 million for $BTC acquisition.
Market sentiment indicators noted a period of "Extreme Fear," during which $BTC increased from approximately $65,000 to $74,000, a 14% gain.