Despite Government Crackdown, Chinese State Media Reports Bitcoin Rally

With Bitcoin reaching three-year highs earlier this week, media channels have been scrambling to cover the asset and its rise. Despite the Chinese government’s aversion to anything crypto-related, state media appears to be keeping a close eye on the leading cryptocurrency as well.

Keeping Tabs on the “Forbidden” Bitcoin

Earlier this week, crypto analyst cnLedger confirmed in a tweet that CCTV, the country’s largest state-run media house, had run a piece on Bitcoin. The analyst explained that the news source covered Bitcoin’s rise to $17,500, marking a 70 percent rise in 50 days. 

CCTV, China's Official TV Channel: #Bitcoin price surpasses $17.5k, up 70% in less than 50 days. Compared with 2017's bull market, bitcoin's network, development and investment eco-system are now far better. The recent rise is driven by institutional funds. pic.twitter.com/yZqzGU5veM

— cnLedger (@cnLedger) November 18, 2020

As the tweet confirmed, CCTV highlighted the rise in institutional investment and the fact that this bull run is much different from the last.

Chinese media houses have been covering cryptocurrencies somewhat extensively since last year. This is despite the government’s stance against any digital assets and their operations in the country. Towards the end of 2019, the Chinese government went on a tear, forcing hundreds of crypto companies out of the country. 

At the time, Beijing’s hammer fell on several top tech and finance hubs. Crypto exchanges, trading firms, and other companies eventually either had to shut their operations or move out of the country entirely. Still, several peer-to-peer exchanges have given access to citizens who still want to invest in the asset. 

It is highly unlikely that the continued coverage from state-run media houses is an indication that the government would want to reverse its stance. With the Peoples’ Bank moving quickly towards digital yuan trials, the government will want to eradicate cryptocurrencies to its maximum extent. 

U.S. News Sources Not Feeling the Bitcoin Rally

While Chinese state media houses appear to put a positive spin on Bitcoin’s latest performance, those in the United States remain unconvinced. 

Yesterday, the Financial Times published an article explaining that Bitcoin’s potential as a safe-haven asset was false. Titled “The elusive promise of Bitcoin,” the editorial focused on the leading cryptocurrency’s volatility. It explained that Bitcoin’s status as a safe haven was more theoretical. It added that the asset had no fundamentals on which its value can be judged, and that its price only represented peoples’ willingness to pay for it.

It’s worth noting that the piece wasn’t all negative. It highlighted that Bitcoin had gotten mainstream adoption this year, with companies like PayPal and the Chicago Mercantile Exchange offering crypto sales to Americans. It also pointed out that Bitcoin could keep rising, especially as the dollar remains on shaky ground. 

Fox Business took a similar route. Its article, titled “Bitcoin no match for gold in coronavirus world,” covered the recent rally with some concern. The news source took quotes from some noted crypto skeptics, including Nouriel Roubini and Peter Schiff. It also warned users against investing in cryptocurrencies, highlighting their volatilities and the fact that they have “no real use.”

The article conveniently failed to mention that several of these detractors have admitted to being wrong this year.