- Although China has banned Bitcoin and other digital assets, local financial institutions have started investing in cryptocurrency companies in Hong Kong.
- The adoption of Bitcoin in China, with more than 1.4 billion people, could trigger a massive bullish rally.
As China pushes forward with its bid to gain greater acceptance of the yuan as the world’s reserve currency, the Chinese Communist Party has slowly shifted its focus towards the yuan. Bitcoin and the rest of the cryptocurrency market. Chinese financial institutions are already investing in cryptocurrency startups through Hong Kong, which is about to enact cryptocurrency-friendly policies.
In addition, the Chinese government understands that crypto is in high demand among mainland Chinese residents, who are reported to be using VPNs to access Binance and other foreign exchanges.
Chinese media is favorable to cryptocurrencies
In recent developments, Binance CEO Changpeng Zhao (CZ) noted that China Central Television (CCTV), a national television network that reports directly to the Chinese Communist Party, has just started broadcasting crypto. Notably, China Central Television has an audience base of more than 1 billion people in six languages. As a result, CZ noted that such a move is extremely bullish for Bitcoin, which could trigger a massive bullish rally.
CCTV (China Central Television) is just broadcasting crypto. It’s a big deal. Chinese speaking communities are buzzing. Historically, coverages like this have led to a bull run.
Not saying in the past predicts the future. And not financial advice.https://t.co/2wcArnPI93
— CZ 🔶 Binance (@cz_binance) May 24, 2023
This comes as the cryptocurrency market faces increased short-term bearish sentiment. According to the latest cryptocurrency market data, the total capitalization of the cryptocurrency market fell by about 1.7 percent in the last 24 hours to about $1.10 trillion. The fall was mainly due to rising fears as Bitcoin fell back below $26,000 on Wednesday.
However, Chinese reporter Wu Blockchain noted that CCTV removed the crypto-asset video after CZ’s tweet.
Over the years, China is known for its strict policies against the cryptocurrency market despite the fact that the largest exchange, Binance, has roots in the region. For example, the People’s Bank of China issued a crypto ban in 2019, saying it would block access to all domestic and foreign currency exchanges and initial coin offering (ICO) websites.
The cryptocurrency market has already been cited by the Chinese government as a major threat to its financial stability success. In addition, famous Chinese social media platforms, including WeChat, started offering services related to digital assets before the government intervened through the platform. yaun digital.
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However, as relations between the United States and China soar amid Russia’s escalating invasion of Ukraine, Xi Jinping’s government has begun to welcome back digital assets. In addition, the Kremlin has previously said that Bitcoin can be used to settle crude oil trade amid sanctions from Western countries.
Bitcoin Market Outlook
The Bitcoin market has been correcting for the past two months after the March breakout, which was triggered by the collapse of three regional banks in the United States and the Fed bailout. push towards $24K. Bitcoin’s downturn comes despite increased risk in the equity market related to the ongoing US debt ceiling debate.