In a recent tweet, Changpeng Zhao (CZ), the CEO of Binanceย Cryptoย exchange, highlighted that China Central Television (CCTV), a state-owned channel, recently aired news related to cryptocurrencies.ย
This event holds significance seeingย as Chinaโs strict anti- cryptocurrency policy in place duringย theย previous two years. CZ remarked, โThis is wholeย lotย of. The Chinese-speaking communities are buzzing. Similar coverage in the past has sparked bull runs.โ
Chinaโs Cryptocurrency Narrative Takes a Dramatic Turn โ A State-Owned Channelโs Impactful Broadcast
China hasnโt been the same in the last couple of years. The countryโs previous dominance in the digitalย currency market, alongside the United States, has completely disappeared owingย to its comprehensive ban two years ago. It would only be surprising to witness any sudden resurgence in the cryptocurrency market.
CZโs tweet coincided with the launch of Chinaโs government-backed Metaverseย network platform wasย known the โChina Metaverseย network Technology and Application Innovation Platform.โ This launch aligns with the Metaverseย network Strategy introduced in February inย theย year, led by the Nanjing University of Information and Science Technology (NUIST).
This turnย of events isย already surprising for China, seeingย as its longย term opposition to digitalย currencies. In April 2021, China initiated a crackdown on digitalย currency mining establishments, leading to a major collapse in BTCโs price.
Theย preliminary downturn caused Bitcoin to fall to just under $50,000, and the decline continued following Elon Muskโs notice of Tesla,ย Inc. no longer accepting Bitcoin as a payment method. Inย doingย so, the digitalย currency plummeted by 42 percent in two months, currentlyย worth $36,700.
By September 2021, China implemented a blanket ban on mining, trading, and usage of digitalย currencies. CZ impliesย that Chinaโs optimistic attitude could potentially hold the key to a bull run. Another trending trader, lilili.eth, shares a similar opinion, stating, โThe involvement of Chinese people doesnโt necessarily indicate a bull market, but the absence of Chinese involvement definitely doesnโt signal a bull market.โ
Nonetheless, Wu Blockchainย Tech dismisses this possibility, keepingย inย mindย that China has previously broadcasted crypto-related content. Nevertheless, Wu Blockchainย Tech supports Hong Kongโs decision to allow retail investors to access licensed cryptocurrency exchanges.
The Impact of Chinaโs Recent Actions on Digitalย currencies โ Change in Outlook for Crypto?
Hong Kongโs 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 Chinaโs substantial influence in the cryptocurrency ecologicalย system, any renewed interest in digitalย currencies from the Chinese Government would have wide-ranging consequences for all stakeholders involved.
CCTVโs decision to air a segment on digitalย currencies marks a notable departure from the strictย controls enforced by authorities in China. Inย contrastย toย the outright ban on Bitcoinย (BTC) mining and digitalย currency exchanges, the segment presented a more balanced perspective, refraining from explicitly negative remarks about cryptocurrencies.ย
It isย worthย mentioningย that although digitalย currency ownership is permitted in China, the regulatory environment remains restrictive.
Inย addition, Douyin, the Chinese equivalent of TikTok boasting over 1 Billion users, briefly included digitalย currency price quotes in its search index. Despiteย theย factย that these quotes were thereafter removed, their initial appearance indicated a growing understanding of digitalย currencies in mainstream media.
The impact of CCTVโs broadcasts reaches far beyond the realm of the digitalย currency market. Chinaโs influential position in shaping futureย ofย the digitalย currencies carries worldwide importance. Being the most populous country and a wholeย lotย of economic force, Chinaโs regulatory strategy has theย capacity to influence trends on an international scale.ย
Watchful observers will closely scrutinize any future developments to decipher the Chinese governmentโs stance on digitalย currencies and how itย could impact the wider financial landscape.
Seeingย as theย present state of the digitalย currency ecologicalย system and Chinaโs evolving position, this broadcast has theย 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 theย capacity of digitalย currencies duringย a regulated framework, the worldwide cryptocurrency community stands ready for wholeย lotย of advancements that could shape futureย ofย the this rapidly evolving industry.
Unitedย States Debt Ceiling Concerns & Chinaโs Optimism on BTCโs Price Amidst Market Uncertainty
The Unitedย States Treasury Secretary, Janet Yellen, recently acknowledged the stress in financial markets owingย to uncertainties surrounding the impending debt ceiling deal deadline.ย
Yellen emphasized the high possibilityย of the Unitedย 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 marketย tragedy of July 2011.
Inย addition, top Republican Kevin McCarthy expressed that there has been no progress in talks since his meeting with Unitedย 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.
Althoughย while the likelihoodย of a debt default may not be entirely favorable for a Bitcoinย (BTC) price surge, thereย is anย opportunity of positive momentum in the cryptocurrencyย market accordingย to recent experiences with the Unitedย States regional banking crisis. Plus, theย pastย few news about Chinaโs supposed optimism can help maintain a positive light on the sentiment surrounding Bitcoin.ย
BTCโs current trading price stands at $26,240, experiencing a decline of over 1.8 percent in the past 24 hours. The worldโs largest digitalย currency is asย ofย 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, thereย is a likelihoodย of further declines for the cryptocurrency.
In the event that Bitcoinย (BTC) loses the support of the 100-day EMA line, itย canย potentially potentially fall to test the 200-day EMA at $25,000. Nonetheless, if thereย is a daily candlestick close below this level, it may lead to a downward movement towards $21,500.
On the other hand, if the digitalย currency manages to reverse its course and surpass the resistance level at $27,500, which aligns with the 50-day EMA, itย canย potentially potentially continue its upward momentum towards $30,000.
