Even after the recent cryptocurrency pressures in China, some traders remain bullish, saying they’re buying at the bottom rather than getting rid of their digital assets.
Before the bearish news from China emerged, Bitcoin was trading at $48,000. However, after the news from the People’s Bank of China, the price of Bitcoin dropped as low as $42,000. Major exchanges such as Huobi and Binance stopped operating in the country and banned the opening of new accounts for Chinese users.
While the mining industry in China has suffered greatly from the restrictions, some cryptocurrency traders and investors with experience of “China banning Bitcoin” are more than happy to buy the cryptocurrency at a low price. Some local investors who spoke to Bloomberg said the bearish move is more likely to be a new buying opportunity.
Bobby Lee, CEO of Ballet Global Inc, stated that he bought some crypto after the initial drop, Bloomberg reported. Lee also said that the repression is not as bad as it seems. After hitting the local low of $40,000, Bitcoin jumped to around $45,000 almost instantly.
“These policies are not new to us, so we see them as a buy signal,” said Stephen, another crypto investor. However, he added that new investors may have a hard time dealing with it.
Numerous traders from China told Bloomberg that there are still several options for buying cryptocurrency, including OTC (Over-the-Counter market) and some centralized exchanges.
The policies presented are not new or surprising, which is linked to the general response to the actions of the Bank of China. According to Bloomberg’s source, due to the decentralized nature of cryptocurrencies, the ban on holding digital assets will most likely not be enforced.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.