Digital currencies were derailed again – but it may only be temporary, we noted on Sept. 27.
Sure, China’s central bank said all cryptocurrency related transactions were now illegal.
But investors may want to use the pullback as an opportunity, we also said.
For one, China has threatened cryptocurrency trading several times in the past, and markets continue to shrug it off. In fact, according to CNBC, “China has periodically tried to restrict crypto activity and Bitcoin has shrugged it off. Not including the latest crackdown, China has announced tough new measures on crypto six times since 2013. Bitcoin fell an average 4% in the week after the announcements but was up an average 46% a year later.”
Days later, it happened again.
Markets are shrugging off China’s threats, as Bitcoin approaches $50,000 again.
“For the past years, the Chinese authorities have often tried to bully bitcoin and force it out of existence, but all its efforts – so far – have always proved a failure. The crypto industry continues to thrive as the market usually recovers from whatever blows it receives from the giant Asian nation,” added Crypto Potato.
Even mentioned miners are just beginning to push higher, including Marathon Digital (MARA) Riot Blockchain (RIOT), and Bit Digital (BTBT).
All could move even higher as institutions race to cater to growing, explosive crypto demand.
U.S. Bank for example is expected to announce that its crypto custody service is available to fund managers, says CNBC.
“The move is the latest sign that established financial players are beginning to accept cryptocurrencies as a legitimate asset class. In the realm of custody banks, which verify and safeguard trillions of dollars of traditional assets for money managers, major players including Bank of New York Mellon, State Street and Northern Trust have all announced plans to custody digital assets,” they added.
In short, it’s time to get bullish on cryptocurrencies again.
Better, it doesn’t matter what China tries to do, they can’t seem to bring cryptos down for long.