Digital currencies are subject to many harassment from governments, especially Chinese and American, and these harassments have not proven that they cause great harm to these currencies despite being affected by them.
The price of the cryptocurrency Bitcoin has fallen by 1% since 5 p.m. Friday to $42,536 at 10 a.m. Saturday in New York, according to Bloomberg.
Bitcoin prices fluctuated at an average rate of 3.7%, as they are trading between 41 thousand and 701 dollars and between 43 thousand and 228 dollars, and it is now down by 34% from the highest level at 64 thousand and 870 dollars that it reached on April 14 last.
Bitcoin lost 2.3% of its value in the past week and is up 47% so far this year, and last Friday the value of cryptocurrencies plummeted after China stepped up efforts to curb speculation on cryptocurrency and its issuance.
A report written by Michael B.
Reagan and Vildana Hajrich report in Bloomberg that despite yet another moment of “fear, uncertainty and doubt” in cryptocurrencies with a decisive decision being made in China, and intense scrutiny of blockchain assets by the Securities and Exchange Commission and other US regulators, the value of crypto assets are proving that they are not exposed to serious risk.
China's decision
Last Friday, China's most powerful regulator cracked down on cryptocurrency by imposing a blanket ban on all cryptocurrency transactions and mining operations, affecting bitcoin and other major cryptocurrencies, and putting pressure on crypto-related stocks and blockchain technology.
Ten entities, including the central bank and regulators for affairs, securities and foreign exchange, have pledged to work together to root out "illegal" crypto activity, the first time that Beijing regulators have united to explicitly ban all crypto-related activities.
Analysts say China also sees cryptocurrencies as a threat to the sovereign digital yuan, which has reached an advanced stage of beta testing.
The move comes amid a global crackdown on cryptocurrencies, as governments from Asia to the United States fear that highly volatile privately managed digital currencies will undermine their control over financial and monetary systems, increase systemic risk, foster financial crime and harm investors.
Despite China's decision to ban all cryptocurrency transactions and mining, along with the aforementioned US measures, the remarkable thing is that the value of Bitcoin has only fallen by 5%, and that cryptocurrencies were hit hard earlier last week when fears spread after news of the collapse spread. The imminent Chinese real estate company Evergrande.
China imposed a comprehensive ban on all cryptocurrency transactions and mining operations (Reuters)
Fear and uncertainty
The report said that fear, uncertainty, and skepticism about cryptocurrencies centered last month around a US Congress infrastructure bill that included tax compliance mandates for crypto brokers.
However, the report continues, this did not affect the Saudi trend within the cryptocurrency community much, with Bitcoin, Ether and others continuing to rise, and modern coins such as Cardano and Solana multiplying Last August, trading volumes on Binance, the world's largest cryptocurrency exchange, jumped 65% in the month, and open interest in Ethereum futures and perpetual futures jumped 41%, according to the report.
The report quoted a website called "Bitcoins.com99" that tracks what the site considers "Bitcoin obituaries", that Bitcoin has died 430 times, according to its statistics.
"The bad news is not unexpected," said Zack Foyle, director of research at Compass Mining. "It comes with all kinds of new technologies, but I expect it to dissipate and get rid of some of its regularity as encryption becomes more widespread and more widely understood."
When it comes to actions by governments, the consensus among industry players is that regulations may change the way market participants conduct transactions, but any news of the asset class's demise is greatly exaggerated, the report said.
"I don't think what regulators do is very important, it will change how people interact with these assets and how they interact with specific jurisdictions," Brian Mossoff, CEO of Canadian crypto investment firm Ether Capital Corp., explained during an interview on Bloomberg's "What Goes Up" podcast. But I don't think the assets themselves will disappear overnight, what will be organized here are access points and markets."
However, for Art Hogan, chief strategist at National Securities, the one thing that is certain is that the risks are increasing further, as more and more big-money investors are diverted from traditional markets, such as hedge fund billionaire Steve Cohen, To true believers in cryptocurrency.