Bitcoin’s Wild Ride: Will China Reopen its Doors to Crypto?

The bitcoin price has been on a wild ride, topping its previous all-time high in recent months, climbing above $70,000 per bitcoin. This surge has helped the ethereum price to triple and Ripple’s XRP to add almost 50% since their 2022 lows. Amidst this price action, Ripple’s chief executive has issued an “inevitable” new crypto exchange-traded fund (ETF) prediction after the success of Wall Street’s spot bitcoin ETFs.

Bitcoin’s price action

China’s president Xi Jinping has overseen a bitcoin and crypto crackdown in China that’s weighed on the price of bitcoin, ethereum, XRP, and other major cryptocurrencies. However, Brock Pierce, a former child actor who co-founded the USDT dollar-pegged stablecoin issuer Tether in Hong Kong a decade ago, believes it’s only a matter of time before China reopens its digital doors to crypto after its 2021 crackdown crashed the bitcoin price.

“Is China going to open up [to crypto]? I’d say it’s inevitable,” Pierce, who is also chairman of the Bitcoin Foundation, told the South China Morning Post. “The question is not so much if, it’s a matter of when.”

Pierce teased a new Hong Kong-based venture to the SCMP, saying he’s “enthusiastic about what’s happening in Hong Kong,” a special administrative region of China that has recently greenlit a handful of spot bitcoin and ethereum ETFs, following in Wall Street’s footsteps.

Hong Kong’s financial hub

Last month, attendees of a Hong Kong bitcoin conference sparked speculation that the much-hyped Hong Kong spot bitcoin ETFs could eventually be opened up to mainland China investors.

“I think Hong Kong is ahead in many ways,” Pierce said. “I think the main opportunity in Hong Kong is in [traditional finance], and that’s where a Hong Kong digital dollar stablecoin has tremendous potential.”

Pierce added that China’s supply chain advantage means “there’s clearly a very big opportunity that exists [in Hong Kong].”

Meanwhile, the crypto market has taken a hit, with bitcoin dumping below $69,000 and ethereum, BNB, Solana, and XRP all seeing significant losses. The cumulative market cap of all crypto assets has seen more than $80 billion gone from yesterday’s peak.

Crypto market cap takes a hit

The bitcoin price has been on a wild ride, and it remains to be seen whether China will reopen its doors to crypto. One thing is certain, though - the crypto market is full of surprises, and investors should be prepared for anything.

Bitcoin’s price action