China Warns Bitcoin Is Heading to Zero
To discourage readers from investing in and using cryptocurrencies, an official Chinese national news media site warns them that Bitcoin’s value could go to zero. The Chinese government has profited from the cryptocurrency market’s rapid collapse by telling investors that Bitcoin (BTC) prices are on their way to zero.
On Wednesday, the Chinese state news agency Economic Daily warned about the largest cryptocurrency by market size to discourage residents from using cryptocurrencies.
The Chinese government prohibited Bitcoin mining in July and has great ambitions to roll out its central bank digital currency (CBDC), the digital Chinese yuan (e-CNY), throughout the country. It prohibited all bitcoin transactions in September of last year; more recently it prohibited foreign cryptocurrency exchanges from functioning within the country in 2018. The Chinese government isn’t the only one making forecasts about where Bitcoin’s price will go.
On Monday, Tom DeMark, founder and CEO of market analysis business DeMark Analytics told Marketwatch that the crypto industry is due for sustained price declines because BTC has fallen below 50% from its November peak of $69,000.
Ethereum Surges 35%
The price of Ethereum has been circling a fundamental resistance level. This critical threshold prohibited ETH from rising higher during the latest rise. However, things could change soon for the intelligent contract token, resulting in a rapid rise. Ethereum appears to be turning over a new leaf on the daily chart. Following a lower low of $878 on June 18, ETH surged 35% and reached a swing high of $1,192. This recovery was spectacular; however, the altcoin is attempting to set a new low, implying that a full-blow recovery is possible.
Suppose the Ethereum price can break through the 8-day Exponential Moving Average. In that case, investors should expect a run-up to $1,543, the immediate resistance level (EMA). Since its latest drop on June 1, this level has been a hurdle for ETH. Any subsequent attempts to raise the price of ETH have failed.
