China’s official Xinhua news agency in June published an analysis on Bitcoin’s latest price surge, touching on the price of the cryptocurrency and speculating on factors contributing to its bullish run.
As reported by Decrypt, these factors include Facebook’s recently announced blockchain digital currency, Libra. Notably, the analysis also cited Bitcoin as having proven its value as a safe haven, framing it within the context of global markets becoming increasingly volatile as a result of ongoing trade disputes and an expected downturn for the global economy.
The Xinhua publication is especially telling coming from the Chinese government’s media arm, which has in the past been far more dismissive of Bitcoin and cryptocurrencies in general. Xinhua had previously called for greater regulation of digital assets while reporting on state-imposed bans of Bitcoin-related activities.
Beijing’s stance towards crypto has been complicated, with Chinese investors allowed to own and hold digital assets but not to engage in crypto trading or organizing initial coin offerings (ICOs). Moreover, reports in April indicated that the world’s second largest economy was even considering placing a ban on Bitcoin mining.
The Xinhua assessment has caught the attention of many investors and comes at a time when the United States under the Trump administration may eventually impose additional tariffs on Chinese goods, despite a recently announced truce between Washington and Beijing.
With many having predicted China’s crypto market to be on its last legs, the latest report suggests changes could be on the horizon as the country begins warming to crypto, at least in the short-term as the country seeks to hedge against trade wars.
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