All the skepticism campaigns and expectations of a record drop have disappointed the steadfastness of the value of cryptocurrencies, and their rise.
Many thought that cryptocurrencies had been dealt a major blow with China’s announcement in late September that it was imposing restrictions on its trading and banning popular exchanges. As usual, skeptics about the future of “Bitcoin” and its sisters were quick to celebrate the expected decline in a moment more severe than the previous decline caused by Elon Musk and his company “Tesla”, after he suddenly woke up to the environmental damage of Bitcoin mining!
But all the skepticism campaigns and expectations of a record drop this time failed in the face of the steadfastness of the value of cryptocurrencies, and indeed their rise, until the ceiling of support for “Bitcoin” fluctuated between 42 thousand and 45 thousand dollars, after it had previously fallen below 30 thousand dollars.
For analysts whose predictions were believed in the past, “Bitcoin” is heading towards a hundred thousand dollars in the foreseeable future. The period between September of this year and the end of 2021 was the focus of positive expectations issued in the previous months.
Indeed, we are currently witnessing this rise of the major currencies, driven by a momentum that China’s harsh measures could not stop, so why did China’s giant and effective step in mining cryptocurrency not affect the upward path? In fact, cryptocurrencies derive their strength from the breadth of their spread in the first place, in a scene that reflects their similarity with the strength that social networks have gained in their rise to reach what they have reached.
On the other hand, the increasing US inflation contributes to the availability of cash that covers the rise in the value of digital currencies, including those classified as “Meme coins”, that is, currencies that are not based on any real idea or project, and do not have any actual value, but simply derive their strength from Being just a ‘joke’ the traders agreed to give it value by buying and selling. Among the most prominent of these currencies are “Dodge Coin” and “Shiba”.
After the US Federal Reserve printed huge amounts of dollars to cover the effects of the “Covid 19” pandemic, the cryptocurrency market witnessed a significant increase in the entry of new traders to the US lands in particular, after a number of them decided to invest monthly government aid money in the purchase of cryptocurrencies.
This continued for several months as thousands of Americans preferred to leave their jobs and rely on government aid under the pretext of “Covid 19”, amid an additional injection of dollars needed to help more than 330 million Americans.
This fact contributed to the formation of the position of Congress on the cryptocurrency sector, as the voice of skeptics was louder than anything else in the corridors of Washington, until this sector became strongly present in the global economy with hundreds of billions of dollars. With US trading platforms leading the global markets, such as Coinbase, the voices of congressmen wary of the cryptocurrency market, calling for its regulation with complete exclusion to ban it, as China did.
In this context, Federal Reserve Chairman Jerome Powell has stated that the federal government needs to regulate the cryptocurrency market, but a blanket ban on Bitcoin (BTC) and other digital assets is not a possibility. Powell’s words were preceded by legislative efforts that entered into force to calculate federal taxes on Americans’ profits from the cryptocurrency market, which practically means that the US government decided to absorb the whole issue and benefit from it.
At a time when Washington succeeded in investing and exploiting the rise of encrypted digital currencies, it seems that China put tens of millions of traders on its soil in trouble after the ban decision, which practically led to large-scale selling that was absorbed by traders from all over the world, including the United States, so they bought what The Chinese sold it at a low price, which led to an increase in the prices of these record currencies due to the high demand.
In summary, the cryptocurrency recovered quickly after the Chinese ban. Indeed, it can be said that the negative Chinese decision gave a great impetus to the rise of currencies after the state of volatility in recent months, and the tightened Chinese restrictions for the seventh time in a row since 2013 provided additional impetus and enthusiasm on the The level of the world among those wishing to invest in cryptocurrency.