BTC up 36% YoY despite China’s warning of it going to zero.

The Chinese government has made significant efforts to convince people that Bitcoin (BTC) would become worthless, but so far, its predictions have been inaccurate. In fact, Bitcoin has gained around 36% since the Chinese government stated that it would become worthless in 2022.

During the bear market, China tried to take advantage of a massive market decline by warning crypto investors that Bitcoin prices were “heading to zero.”

In June 2022, the Chinese national news media agency, Economic Daily, issued a warning about Bitcoin in an attempt to assure citizens that the asset was a worthless “string of digital codes.”

“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,” the article read.

Since the Chinese government issued the warning, Bitcoin has not lost any value, and, in fact, has significantly increased in value.

According to data from CoinGecko, when the Economic Daily released the article in June 2022, Bitcoin traded at around $20,000. Twelve months later, at the time of writing, BTC is trading at $28,852, up around 36%.

Despite experiencing ups and downs over the past year, Bitcoin has posted notable gains. The largest cryptocurrency by market cap dropped to as low as $15,700 in November 2022. Then, in April 2023, Bitcoin briefly crossed the $30,000 price mark.

Related: Hong Kong’s regulatory lead sets it up to be a major crypto hub

China was one of the first countries in the world to take regulatory action against crypto. In 2017, Chinese regulators banned cryptocurrency exchanges from providing services in the country. Despite the ban, Bitcoin continued to hit its all-time highs, surging 1,900% all the way up to $20,000 by the end of 2017.

In 2021, China’s central bank announced a new ban on crypto, joining forces with various Chinese authorities to crack down on local crypto activity. Just a few months after the ban was announced, Bitcoin hit its all-time high at around $68,000 in November 2021.

Despite “banning” crypto in 2021, China has remained the second-largest Bitcoin miner in the world. The Chinese government also seemingly allows citizens to own cryptocurrency and protects the rights of crypto investors.

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