Bitcoin, China, Musk, and Miami event
The Chinese government warns of the risks of crypto trading, but Bitcoin trading remains legal. After cryptocurrencies crashed across the market after intensified Chinese bitcoin suppression reports, the government released a new series of reports acknowledging that trading in digital assets does not necessarily have to be against the law.
Citizens have the freedom to trade bitcoins at their own risk. In late May, China banned financial institutions and payment companies from providing services related to crypto transactions and warned investors not to trade in a new asset class.
Although this is not the first time the Chinese government has tried to suppress the digital currency market, Beijing has gone a step further by suppressing bitcoin mining. The government spokesman clearly acknowledges that China does not consider crypto trading illegal. Xinhua announced:
If only virtual currencies like Bitcoin are bought and sold as virtual goods, ordinary people have the freedom to participate in transactions at their own risk.
Xinhua added that it would continue to exhibit projects and platforms that attract retail investors with marketing cryptocurrencies as speculative investments that can enable people to get rich quickly.
China’s central television has warned the public how easy it is to create a digital token out of nothing. The two state-run news agencies hope to educate unconscious retail investors about possible scams in the cryptocurrency market.
Tesla CEO Elon Musk brought more stress to the cryptocurrency markets by announcing another series of tweets related to cryptocurrencies on Thursday night.
Bitcoin (BTC) lost about $ 2,000 in a few hours after Musk took to Twitter again to post about BTC. The price of bitcoin reacted immediately and dropped from about 38,700 to 37,500 in an hour. The stock price comes shortly after Bitcoin tried to test $ 40,000 yesterday, and some traders suggest that BTC could face a correction before continuing the uptrend. Musk’s new Bitcoin tweets have sparked a new wave of outrage in the crypto community. Musk appeared on Twitter as the main factor influencing the prices of BTC, which previously caused great optimism in the market by announcing the purchase of Bitcoin worth 1.5 billion dollars in February. After the suspension of BTC payments at Tesla, Musk hinted that the company could take its Bitcoin assets off the balance sheet, leading to great instability and falling BTC prices.
Musk’s latest tweets come just before the Miami Bitcoin 2021 event, which is due to start this morning, and which is being touted as the biggest Bitcoin event in history.
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