China’s battered crypto investors appear unfazed by TerraUSD collapse, market meltdown
- Some China-based investors say they believe plummeting prices do not reflect the long-term value of cryptocurrencies
- Despite a ban on cryptocurrency trading in mainland China, some investors have found ways to access foreign platforms
China’s cryptocurrency investors, pummelled by volatile prices and the country’s crackdown on bitcoin, appear unconcerned about the recent market crash, with one calling it a regular “washout” in an interview with the South China Morning Post.
Bitcoin and ethereum, the two largest cryptocurrencies, saw sharp falls of about 30 to 40 per cent in value last week, with bitcoin prices dropping to around US$20,000 on Wednesday, close to the level in December 2020.
Cryptocurrency lending platform Celsius Network has halted withdrawals, while concerns have been rising over the financial health of Coinbase Global, a major US crypto exchange that was once the custodian of US$256 billion worth of cryptocurrencies.
For some Chinese investors, however, what others view as a market meltdown is simply a blip.
Yang Wenna, a China-based investor in crypto assets such as bitcoin and ether, said there are many short-term factors contributing to the fall of cryptocurrency prices, including regulatory backlash resulting from the collapse of TerraUSD and Luna, and Russia’s invasion of Ukraine.