After a difficult start to the week marked by the Evergrande affair and the expectation of the Fed's monetary policy announcements for the coming weeks and months, Bitcoin was on its way up. The $45K mark was reached.
It must be said that all the noise around this two news had quickly faded. Jerome Powell had received the message from the financial markets and the Fed had announced that it was keeping its monetary policy unchanged for the time being.
Tapering is coming, but no date has yet been announced. The Fed is responding positively to the markets and giving itself time.
China bans Bitcoin (again) just as the price of Bitcoin was recovering
As is often the case in the Bitcoin world, it is at these times that some choose to propagate FUD (Fear, Uncertainty, and Doubt). Once again, the FUD came from China, which banned Bitcoin again. You thought Bitcoin had already been banned in China in May 2021, but also in 2018, and in 2017... But China continues to ban Bitcoin.
In short, China keeps banning the same thing over and over again.
Some people go into the nuance of saying that this time China's central bank said that cryptocurrency transactions were illegal. Frankly, I don't see much of a difference from the May 2021 announcements where owning Bitcoin was made illegal, as was mining Bitcoin.
We have since seen a great exodus of Bitcoin from China to the West, which has allowed Bitcoin's ESG score to rise considerably. Indeed, more than 50% of the electricity consumed by the Bitcoin network now comes from renewable energy (56% according to the Bitcoin Mining Council). This is a great thing for Bitcoin in the long run.
This new ban on Bitcoin and cryptocurrencies announced by China has caused a drop od its price to just below $41K ($40.8K):
Some people continue to panic about this FUD and do not seem to have learned the lessons of the recent past
Those who panicked and sold their Bitcoin following the announcement of yet another Chinese ban on Bitcoin seem to have difficulty learning the lessons of the past. Yet, this past is very recent.
China is waging a war against Bitcoin, which conveys values that are the opposite of everything the Chinese Communist Party stands for. Bitcoin is a symbol of freedom. It is the opposite of what the Chinese communist party stands for.
It should come as no surprise to you that China's central bank has said that it considers Bitcoin and cryptocurrency transactions to be illegal. Central banks have no interest in endorsing assets that are not their products.
On the other hand, you will see that whenever possible, e-RMB is promoted by the PBOC (People's Bank of China). The Chinese government's CBDC (Central Bank Digital Currency) should be seen as a sign of progress for this institution. Not Bitcoin, which is the real progress for the world.
Even illegal and banned, Bitcoin will continue to be used in China
Secondly, you know very well how human nature is.
When you forbid a human to do something, it will make him want to do it even more. This even applies to the Chinese population, who will find it hard to stop themselves from using Bitcoin and cryptocurrencies. On the contrary. This new ban will only strengthen their appetite for Bitcoin in my opinion.
So this news is a complete non-event.
It will have caused a dump in the price of Bitcoin which will allow some to profit from it yet again. Again, the pattern is the same every time. If you are tired of buying the dip, you don't understand Bitcoin well enough yet.
Take a step back, then keep faith in the Bitcoin revolution
Don't panic. Take a step back. Accumulate more BTC and stand patiently in a waiting position. The future that awaits Bitcoin is incredible. Don't change your mind and sell your BTC at a loss just because a central bank comes along and says it doesn't recognize Bitcoin transactions as legal.
Bitcoin is here to disrupt this opaque and corrupt monetary and financial system.
It will take time, but you can rest assured. Bitcoin doesn't need China. It will continue to advance in its revolution. If you have faith in the Bitcoin revolution, then you will be among those who will benefit most in the months and years to come.
It's up to you as always.