Bitcoin (BTC) and altcoins have been rocked by the news from China this week. Evergrande, the second largest real estate developer in the country, announced that it would not be able to pay its debts that exceed $ 300 billion. The possibility of this situation turning into a global crisis hits the cryptocurrency market as well as all financial markets.
In the week that Bitcoin fluctuated between $ 45,500 and $ 39,700 and Ether (ETH) fluctuated between $ 3,200 and $ 2,670, cryptocurrencies took another hit with negative statements made by the People’s Bank of China (PBoC). While the PBoC was thought to have made new statements regarding the cryptocurrency ban that it had already implemented, it later turned out to be a guide that was released on September 15 and has already been priced in by the market.
Many market commentators say that this is news that has been deliberately spread to create FUD (fear, uncertainty, anxiety) in the market. warned investors not to worry.
Robert Kiyosaki, one of the popular figures in the cryptocurrency market, took the issue from another angle. The author of the best-selling book “Rich Dad Poor Dad” argued that this move from China means that he is “about to launch his own cryptocurrency.”
Kiyosaki, In its post of September 24 set:
“China announced again that it will block cryptocurrencies this morning. What does it mean? It means that China is about to launch the state-created cryptocurrency. If the US follows this example, it will mean that the Fed currency Bitcoin will be banned, the US will become a centralized state like China, communism will begin in the country, and our freedoms will end. “
China announced this morning a new offensive against Crypto. What does that mean? It means that China is about to launch its government crypto currency. If you follow it, Fed currency means Bitcoin is outlaw, US becomes centralized government, like China, US communism begins, our freedoms end. Beware.
– therealkiyosaki (@theRealKiyosaki) September 24, 2021
Until now, China has been one of the leading countries in developing a central bank digital currency (CBDC). China, which has been working on its digital yuan for several years, started testing CBDC in Hong Kong after 4 pilot provinces last year.
China’s attitude towards cryptocurrencies has a huge impact on the market. All statements made by government officials regarding cryptocurrency bans are putting downward pressure on the market, even if there are no new details. Lastly, the announcement of the tightening of the measures taken against mining activity and trade last May caused the correction in the market, which was already in a downward trend, to deepen. The fact that Chinese miners stopped their activities and left the country caused the hash rate to be cut in half.
Kiyosaki is a commentator who is followed in the crypto industry and one of the main supporters of Bitcoin. The author, in a statement he made in December last year, said that Bitcoin will see $ 50,000 in 2021. Kiyosaki believes that the cryptocurrency will reach at least $ 75,000 in three years.
Bitcoin is trading at around $ 42,620 at the time of the news.