The cryptocurrency market has faced a critical downturn recently as more regulations by governments keep down the value of BTCSuper Bitcoin, the operator of China’s largest DeFi community, announced on Twitter that several DeFi miners have lifted their liquidity pools in stablecoins such as USDT and DIA to buy into the receding BTC market.
According to the tweet, the DeFi miners who took to hunting for the bottom of the largest cryptocurrency were driven by the potential interests they believed could be made after the massive BTC selloff. Super Bitcoin further notes that the Chinese crypto ban is good news for Binance.
Binance will become the next alternative for China’s residents due to its origin and location as local exchanges in the country were affected by the crackdown.
Wu Blockchain has reported in a tweet that after China placed a ban on Bitcoin mining and trading, China’s top exchange Huobi is perceived to be “withholding users from opening contract/options transactions.”
“Bitcoin is not a Safe-Haven”- Peter Schiff
American stockbroker and financial commentator, Peter Schiff had tweeted on May 19 that BTC isn’t a safe-haven due to its volatility and trades with other high-risk assets that are causing it to tank.
Over the past two weeks, despite non-stop media pumping #Bitcoin dropped by 40%. Meanwhile without any media fanfare #gold finished another positive week, closing at a 20-week high of $1,880 per ounce. Bitcoin's bear market and gold's bull market are both unnoticed by the media.
— Peter Schiff (@PeterSchiff) May 21, 2021
Schiff, who is known for his open criticism of Bitcoin, dropped a prediction on Friday in a tweet that Bitcoin might face more bearish declines.
“If #Bitcoin’s $65K peak is followed by a bear market similar to the one that followed the 2017 $20K peak; it will bottom at around $10K in about a year. But with 10,000 cryptos to choose from a crowded field means this bear could be far more ferocious. Get ready for a long winter.”
Following the Tesla saga and the clampdown on crypto transactions by the Chinese government, it might be difficult to tell if the crypto market is set for a massive decline.