FUD news in the major media leads to panic and market collapse. This opinion has now spread on the network. Many crypto enthusiasts familiar with the situation in China say that Bloomberg and Reuters are exaggerating
From a post about the dangers of mining Bitcoin to the environment, written by Elon Musk last week, and until the recent ban on mining cryptocurrencies - all this news quickly spread in the media and led to panic in the market.
The two main news agencies - Bloomberg and Reuters - were the first to print materials with sonorous headlines. Of course, this is done to attract the attention of readers, say many investors. However, this has a bad effect on the market and is not true.
In particular, Qiao Wang from Defi Alliance reported that China does not prohibit the use of cryptocurrencies or mining. The authorities are now reviewing several laws to combat speculation. However, there are no direct prohibitions.
It should be noted that news about the ban on mining in China has been appearing in the media for several years. Topics range from regulatory pressure to dismantling equipment in certain regions. And each time such materials negatively affected the price of cryptocurrency, causing its adjustment.
But look, say crypto enthusiasts, when the news first appeared with such a sonorous name, the price of BTC was in the region of $200. Since then, the cryptocurrency has survived a trading ban in China in 2017 and has reached ATH over $64,000. Let's stay calm and don't give in to FUD.
This latest “China ban” lacks details. It’s some high level guidance. We’ll see if there’s any concrete actions.— Qiao Wang (@QwQiao) May 21, 2021