China Warms Up to Crypto: Bitcoin Could See a Major Boost

• China has recently announced that it is lifting its ban on cryptocurrency, allowing for bitcoin and other cryptocurrencies to continue to be mined and traded in the country.
• The New York Federal Reserve issued a report which suggests that this news may not have much impact on the price of bitcoin as it does not react to monetary news.
• Simon Peters of e-Toro believes that this report supports the idea of bitcoin being a form of digital gold and holds similar properties to stocks or precious metals.

China Reinvigorates Crypto Scene

Bitcoin has been having an excellent year in 2023, with prices up 50% since 2022. This could be due in part to China’s newfound leniency towards cryptocurrencies as they are lifting their ban on mining projects in order to become more energy efficient. This news has been met with excitement by many people who were previously unable to trade or mine cryptos within the country.

NY Federal Reserve Report

The New York Federal Reserve released a report discussing how the decision by China would not likely affect the Bitcoin price significantly, due to its reaction (or lack thereof) to monetary news. The report states that Bitcoin is „orthogonal“ (unrelated) from macroeconomic news and casts doubt onto discount rates when pricing Bitcoin.

Digital Gold

Simon Peters of e-Toro fame believes that this new information further cements Bitcoin’s status as „digital gold“, suggesting that it holds some similarities to stocks or precious metals rather than currencies or commodities typically affected by economic factors.

The Future Of Cryptocurrency In China

It remains unclear exactly what kind of impact this new stance will have on cryptocurrency within China, however it appears likely that there will be an increase in activity given the newfound freedom for miners and investors alike. It could also mean more opportunities for Chinese citizens who wish to get involved in crypto trading without fear of legal repercussions from their government.


Overall, this new move by China could potentially provide a boost for Bitcoin and other cryptos around the world as well as give Chinese citizens more access and freedom when it comes to trading crypto assets without worrying about any consequences from their government. It will be interesting to see what kind of effect this announcement has over time, but for now we can only wait and see!