Recently, the domestic crackdown on cryptocurrencies has begun anew. Is the cryptocurrency market really going to collapse this time?

I think not, or rather, it definitely won't. Seeing this, some might ask, why say that the cryptocurrency market still has hope when the major mainstream coins are all plummeting this morning?

Don't rush; listen to my viewpoint first before considering whether to continue down the cryptocurrency path.

First of all, my conclusion regarding this crackdown on the cryptocurrency market: personal trading of cryptocurrencies is currently still not illegal; using bank cards for deposits and withdrawals is only a violation, not illegal (unless in special circumstances).

Secondly, this is not the first time the domestic crackdown on the cryptocurrency market has occurred. Each time there has been a crackdown, there is a significant drop for a period, followed by a crazy surge, sometimes even breaking historical highs!

Here are a few notable cases:

First, in December 2013, it was made clear that Bitcoin is not a currency. Bitcoin dropped as expected and did not recover for three years.

Second, in September 2017, it was made clear that financial institutions were not allowed to provide settlement services for trading platforms. From then on, there were no trading platforms in China, and Bitcoin dropped again as expected. However, this time it only lasted a few months before Bitcoin reached a new high.

In the above two instances, the first prevented Bitcoin from circulating in reality, and the second restricted the exchange of Bitcoin and RMB.

The result is that Bitcoin has difficulty impacting transactions in the real world.

Third, in July 2021, the mining ban was implemented. Mining is merely one way to protect the security of the blockchain network. The crackdown on domestic mining can only weaken network security to a certain extent in the short term and damage market confidence, having far less impact than the previous two times.

In fact, most people do not realize that after the crackdown on mining in July 2021, the overall computing power of Bitcoin has reached a new high.

The final result is that the trading volume of Bitcoin in the domestic market has shrunk, and China’s influence on Bitcoin prices is becoming increasingly small.

Cryptocurrencies like Bitcoin are inherently cross-border; the influence of a single country will only become smaller.

Therefore, while there is a crackdown, there are also new highs. For those brothers taking long positions, there is no need to worry too much; soon, Bitcoin will return to the 100,000 mark!