Several Chinese media outlets highlighted cryptocurrency performance throughout the year
While the Chinese government continues to regard Bitcoin and other cryptocurrencies as illegal, a number of state-affiliated media outlets published reports describing them as the best-performing assets so far this year.
Yesterday, the state-owned Xinhua News Agency cited a Bloomberg report titled “Crypto is Beating Gold as 2020’s Top Asset So Far.”
The outlet summarized Bloomberg’s article and noted that cryptocurrencies are “decentralized financial instruments,” concluding that they have become “the best-performing asset class this year.”
China Central Television (CCTV), one of the country’s most-watched broadcasters, also ran a segment on digital assets. In a video clip, the network discussed the state of cryptocurrencies and emphasized their performance year-to-date, highlighting a roughly 70% price increase this year.
Prominent crypto commentator Dovey Wan observed that coverage of cryptocurrencies has spread across other outlets, appearing “in all newspapers, online media and television.” She noted that these reports shared the same message: digital assets have outperformed other investment instruments this year.
Binance CEO Changpeng Zhao replied to Wan’s tweet on the topic, saying that even if people might not fully grasp the significance of such coverage in Chinese state media, the impact “is large.”
Wan’s observations have sparked speculation about the intent behind this broad media push, especially in a country where cryptocurrencies remain banned for official use. Some observers suggest it could be related to the country’s central bank digital currency (CBDC) pilot programs currently underway.
Historically, news and announcements from China have influenced prices. Many expect that this two-day media campaign promoting cryptocurrencies as 2020’s top-performing assets affected the market.
At the end of 2019, Chinese President Xi Jinping urged the country to accelerate blockchain adoption. In the hours following his remarks, the crypto sector experienced one of its most dramatic price surges: Bitcoin (BTC) rose about 42% within a few hours.
A few weeks later, government officials clarified that a positive stance on blockchain technology did not necessarily indicate a similar position on cryptocurrencies. After reaffirming that digital assets would remain illegal in the country, cryptocurrency values fell in response.
Translated by Carolane de Palmas