Did China Crypto Crackdown Start New Bitcoin Bullrun?
Last Updated on 29 August 2021 by CryptoTips.eu
In the excellent 2019 movie The Laundromat, Meryl Streep, Sharon Stone, Antonio Banderas, Matthias Schoenaerts and many others explain how the wealthy and powerful excel at hiding their dollars, euros and pesos from their respective tax authorities, via various intertwining tales.
The chapter about the African mogul romancing his daughter’s best friend is an instant classic.
Based on fact
Another rather interesting side story (for crypto enthusiasts) in the movie tells how members of the Chinese communist party tend to invest outside of what Beijing officially allows. In order to whitewash their winnings and live stoically according to communist diktat, they then rely on European and Middle-American lawyers (in this case the guys are from Panama).
The story is based on facts.
Chinese president Xi Jinping vowed to clean up these excesses, and in order to protect his grand 2022 unveiling project known as digital yuan, he forbade communist party members from investing in Bitcoin as well (easier to present a digital currency to the world during the next Winter Olympics if its biggest competitor is forbidden of course).
Problem is that Bitcoin fell at first when the Chinese crackdown on all things crypto became apparent, but that since finding a (temporary) bottom at $29k and renewed interest from alternative US energy providers (who saw favorable trading conditions as the Chinese pulled out, it has shot up again.
Still HODLing
By now, new bitcoin miners are springing up in Canada and the US (especially Texas) at astonishing rates (while the remaining Chinese miners moved their rigs outside the country) and crypto will finish the summer vacation at very healthy levels, with a $50k bitcoin price being touched last week. Cardano and Tezos noted bullruns in the past few days as well.
With all this, it is possible that a Chinese crypto crackdown might just have started another bitcoin bullrun. We need September confirmation, but with only four months left, 2021 could yet turn out to be another grand cru.
Looking at all the doom and gloom that classic mainstream media were sprouting when bitcoin fell from $64k to $29k, that would be quite the comeback. If Bitcoin could pull a similar surprise in the final quarter of 2021 as it did in the closing months of 2020, a price tag of $100,000 does not seem impossible.
I wonder how many members of the Chinese communist party are still HODLing at this point.
amixstudio / Depositphotos.com
