In a recent tweet, Changpeng Zhao (CZ), the CEO of Binance Crypto exchange, highlighted that China Central Television (CCTV), a state-owned channel, recently aired news related to cryptocurrencies.
This event holds significance seeing as China’s strict anti- cryptocurrency policy in place during the previous two years. CZ remarked, “This is whole lot of. The Chinese-speaking communities are buzzing. Similar coverage in the past has sparked bull runs.”
China’s Cryptocurrency Narrative Takes a Dramatic Turn – A State-Owned Channel’s Impactful Broadcast
China hasn’t been the same in the last couple of years. The country’s previous dominance in the digital currency market, alongside the United States, has completely disappeared owing to its comprehensive ban two years ago. It would only be surprising to witness any sudden resurgence in the cryptocurrency market.
CZ’s tweet coincided with the launch of China’s government-backed Metaverse network platform was known the “China Metaverse network Technology and Application Innovation Platform.” This launch aligns with the Metaverse network Strategy introduced in February in the year, led by the Nanjing University of Information and Science Technology (NUIST).
This turn of events is already surprising for China, seeing as its long term opposition to digital currencies. In April 2021, China initiated a crackdown on digital currency mining establishments, leading to a major collapse in BTC’s price.
The preliminary downturn caused Bitcoin to fall to just under $50,000, and the decline continued following Elon Musk’s notice of Tesla, Inc. no longer accepting Bitcoin as a payment method. In doing so, the digital currency plummeted by 42 percent in two months, currently worth $36,700.
By September 2021, China implemented a blanket ban on mining, trading, and usage of digital currencies. CZ implies that China’s optimistic attitude could potentially hold the key to a bull run. Another trending trader, lilili.eth, shares a similar opinion, stating, “The involvement of Chinese people doesn’t necessarily indicate a bull market, but the absence of Chinese involvement definitely doesn’t signal a bull market.”
Nonetheless, Wu Blockchain Tech dismisses this possibility, keeping in mind that China has previously broadcasted crypto-related content. Nevertheless, Wu Blockchain Tech supports Hong Kong’s decision to allow retail investors to access licensed cryptocurrency exchanges.
The Impact of China’s Recent Actions on Digital currencies – Change in Outlook for Crypto?
Hong Kong’s recent actions have been interpreted as a discrete trial conducted by China to assess the viability of regulating cryptocurrency service providers through thoughtful measures. Given China’s substantial influence in the cryptocurrency ecological system, any renewed interest in digital currencies from the Chinese Government would have wide-ranging consequences for all stakeholders involved.
CCTV’s decision to air a segment on digital currencies marks a notable departure from the strict controls enforced by authorities in China. In contrast to the outright ban on Bitcoin (BTC) mining and digital currency exchanges, the segment presented a more balanced perspective, refraining from explicitly negative remarks about cryptocurrencies.
It is worth mentioning that although digital currency ownership is permitted in China, the regulatory environment remains restrictive.
In addition, Douyin, the Chinese equivalent of TikTok boasting over 1 Billion users, briefly included digital currency price quotes in its search index. Despite the fact that these quotes were thereafter removed, their initial appearance indicated a growing understanding of digital currencies in mainstream media.
The impact of CCTV’s broadcasts reaches far beyond the realm of the digital currency market. China’s influential position in shaping future of the digital currencies carries worldwide importance. Being the most populous country and a whole lot of economic force, China’s regulatory strategy has the capacity to influence trends on an international scale.
Watchful observers will closely scrutinize any future developments to decipher the Chinese government’s stance on digital currencies and how it could impact the wider financial landscape.
Seeing as the present state of the digital currency ecological system and China’s evolving position, this broadcast has the capacity to ignite a market recovery. Market participants eagerly anticipate further clarification from Chinese authorities and will meticulously analyze any regulatory measures introduced in response to the growing interest in cryptocurrencies.
As China embraces the capacity of digital currencies during a regulated framework, the worldwide cryptocurrency community stands ready for whole lot of advancements that could shape future of the this rapidly evolving industry.
United States Debt Ceiling Concerns & China’s Optimism on BTC’s Price Amidst Market Uncertainty
The United States Treasury Secretary, Janet Yellen, recently acknowledged the stress in financial markets owing to uncertainties surrounding the impending debt ceiling deal deadline.
Yellen emphasized the high possibility of the United States Government running out of sufficient cash in early June 2023. Any indication of a failure to reach a deal before the June 1 deadline could have severe consequences for financial markets, similar to the market tragedy of July 2011.
In addition, top Republican Kevin McCarthy expressed that there has been no progress in talks since his meeting with United States President Joe Biden. McCarthy is scheduled to hold a press conference on Wednesday, and it is critical for a commitment to be made regarding efforts to avoid a default, not only for the stock markets but likewise for the cryptocurrency market.
Although while the likelihood of a debt default may not be entirely favorable for a Bitcoin (BTC) price surge, there is an opportunity of positive momentum in the cryptocurrency market according to recent experiences with the United States regional banking crisis. Plus, the past few news about China’s supposed optimism can help maintain a positive light on the sentiment surrounding Bitcoin.
BTC’s current trading price stands at $26,240, experiencing a decline of over 1.8 percent in the past 24 hours. The world’s largest digital currency is as of now testing the 100-day Exponential Moving Average (EMA) line as a potential support level.
Given that the Relative Strength Index (RSI) is in the bearish zone below the neutral line at 50.0, there is a likelihood of further declines for the cryptocurrency.
In the event that Bitcoin (BTC) loses the support of the 100-day EMA line, it can potentially potentially fall to test the 200-day EMA at $25,000. Nonetheless, if there is a daily candlestick close below this level, it may lead to a downward movement towards $21,500.
On the other hand, if the digital currency manages to reverse its course and surpass the resistance level at $27,500, which aligns with the 50-day EMA, it can potentially potentially continue its upward momentum towards $30,000.