The recent surge in the value of Bitcoin has captured the attention of internet users in mainland China, despite the government’s strict ban on cryptocurrency activities. Bitcoin (BTC), the world’s largest cryptocurrency, experienced a significant increase of over 21% in the past five days, reaching $64,000 on Thursday.
Bitcoin Is Trending On Chinese Social Media
The rapid rise in Bitcoin price made it a trending topic across major Chinese social media platforms, with Weibo ranking it as the 11th most-searched term at one point on Wednesday. Additionally, Bitcoin’s popularity soared by over 358% on WeChat, according to Tencent Holdings’ official WeChat Index.
This surge in interest follows a 676% increase in Bitcoin’s popularity on WeChat on February 13, coinciding with its milestone of surpassing the $60,000 mark for the first time in over two years. Bitcoin’s price has risen by 47% since the beginning of February, bouncing back from the lows experienced in the previous year when it mostly remained below $30,000, following a downturn in the crypto market in 2022.
The recent momentum in Bitcoin’s value can be attributed in part to the introduction of Spot Bitcoin ETFs in the U.S. in January. This has propelled Bitcoin to its highest trading levels since reaching a record high of $69,000 in November 2021.
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China’s Regulatory Crackdown On Crypto
The significant interest shown on Chinese social media platforms regarding the rise in the Bitcoin price underscores the resilience of the crypto community in mainland China, despite the government’s strict stance against crypto-related activities. Despite warnings issued by platforms like Binance, mainland users have found ways to create accounts and trade cryptocurrencies, according to South China Morning Post.
However, the Chinese government has intensified its monitoring of crypto-related activities, citing potential risks to financial stability. Beijing’s focus has shifted towards addressing money laundering risks associated with cryptocurrencies, even as it supports Hong Kong’s aspirations to become a major hub for virtual assets.
According to research firm Chainalysis, mainland China ranked 11th in cryptocurrency adoption among 20 major countries last year, dropping from the 10th position in 2022. Additionally, while mainland China’s ranking in trading volume on centralized crypto exchanges fell to 10th place last year from second in 2022.
Whilst, Chainalysis noted a rise in peer-to-peer trading volume, with China climbing to the 13th position from 144th in 2022. Notably, before the collapse of cryptocurrency exchange FTX in 2022, mainland Chinese traders constituted 8 percent of the platform’s user base, according to the company’s bankruptcy filings.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
