Bitcoin Starts 2022 at $47.2K as Fresh Research Pins Performance on China Trader Exodus
Introduction
China has long been curtailing the flow of cryptocurrencies within the county. After exhausting all of its weapons from the arsenal, China turned towards deplatforming as the final bow from its sheath. As predicted, this move by China affected the bullish market that was expected to take off prior to Christmas.
As the investors were eagerly waiting for Bitcoin to reach $50,000, the cryptocurrency fell 5% down moments after achieving this feat. Although the ‘Santa Rally’ came in just to compensate for the fall, Bitcoin had to settle for $47 200 as it stepped into the new year. It came as a disappointment for people who were excited about the $50k mark. You all get to know about the same by just going through the BTC price prediction; here, experts predict Bitcoin price for upcoming days.
China’s Deplatforming of Crypto Exchanges
China has always been at the top of the list of countries attempting to curb the momentum of cryptocurrencies. Through the years, the policies regarding cryptocurrencies have become narrower at a rapid pace. In 2021, the ultimatum by the Chinese government urged the Chinese crypto exchanges to deregister themselves. As a result, the exchange platforms gave until the 31st of December for the users from China to leave the platforms.
According to this theory, this move by the Chinese government resulted in a selling spree just towards the end of the year. The Chinese users who were waiting presumably started selling their holdings as Bitcoin reached $50,000. And It brought a 5% downfall to settling the coins at around $45,000.
An Optimistic Event for Future
Some in the crypto community view this event as a favorable aspect of cryptocurrencies because the crypto industry can evolve without the impediments from the Chinese side. The reference to the time frames proves how poorly the Asia timing has been performing against the US or European timing. Free of the pressure from the Chinese government, cryptocurrencies can now possibly perform well in other parts of Asia.
According to some, the thin holiday liquidity may be a reason for such falls, as seen on the last day of 2021. Before the participation of Wall Street and institutional investors, the market could not be predicted with any precision because the retail investors do bring the unanimity of institutional investment to the market. A prediction for 2022 claims that there could be turnover in the market in favor of institutional investors.
