China Warns Citizens to be Skeptical of Bitcoin Bullish Run
Bitcoin’s bullish wave has been remarkable since late last year and has continued into the New Year. The massive surge in price has attracted international attention, and now Chinese media warn citizens about the bullish run.
Bitcoin A High-Risk Investment
China’s state media has been broadcasting messages asking citizens to be skeptical about the rise in Bitcoin price. National tabloids the Economic Daily and People’s Daily have published articles classifying the crypto asset as a high-risk investment. Coincidentally both tabloids are directly affiliated with the Communist Party.
The publication of the Economic Daily noted that the decentralized nature of Bitcoin makes the asset unreliable. The medium used words like a bubble, strong volatility, and high risk to classify the leading asset. Citing instances of high volatility like the January 4 dip when the price of Bitcoin plummeted from $33,000 to $28,000. The Chinese tabloid believes that BTC possesses massive risks for investors and warned citizens against investing in the coin.
The tabloid further stated that the lack of regulation for Bitcoin had created a favorable environment for speculations. These speculations, coupled with the Covid Pandemic that affected financial markets, affected the price of Bitcoin.
Bitcoin Grabs Attention in China
Bitcoin continues to grab the headlines in China, as different countries have reported the coin’s movements. It should be noted that China has always maintained that it does not approve of BTC as a real currency. Trading the country’s currency is banned, but citizens find ways to circumvent government regulations.
Meanwhile, China continues to move towards the launch of its digital currency ‘’ the digital yuan’’. The currency, which has been in the works for the past six years, is close to fruition.
Recently the government revealed that it would hold a new lottery in Shenzhen as part of tests. The lottery would see the government airdrop 200 digital yuan ($31) to over 100,000 recipients. Nevertheless, Bitcoin continues to make major waves in the Asian country with more interest in the coin. It will be interesting to see how the leading coin performs in the coming days as it is currently valued at $40,475.