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Binance CEO Changpeng Zhao has said that he believes the crypto space could see the beginning of a bull run after China Central Television aired a segment on crypto.
The CCTV programming has an audience of over 1 billion and could spark a bull run based on past examples.
A Rare Segment On Crypto
On the 23rd of May, 2023, the state broadcasting corporation, China Central Television (CCTV), aired a segment discussing the adoption of cryptocurrencies. According to the details available, the segment reported that regulators in Hong Kong have made “final preparations” for trading virtual assets in the special administrative region. According to the segment, the regulators are ready to begin accepting applications from virtual asset trading platforms.
During the segment, an official representing the Securities and Futures Commission (SFC), Zhonghui Cai, explained that virtual asset regulation faces several challenges, such as the potential for conflict of interest between platforms and clients, cybersecurity, and the surety of client assets. It was previously reported that the guidelines in question would become effective by June 2023. However, the Securities and Futures Commission has yet to approve any virtual asset trading platform for retail investors.
Could This Signal An Impending Bull Run?
As a result of the broadcast of a segment on Chinese Central Television, the larger cryptocurrency ecosystem is buzzing with excitement. The broadcast on China’s largest state-run broadcaster caught the attention of crypto enthusiasts, including Binance CEO Changpeng Zhao. In response to the coverage, Zhao took to Twitter to predict that the coverage could lead to a bull run in the crypto market, going by previous instances. According to Zhao, past coverages similar to the one on China Central Television have historically sparked bull runs in the crypto markets.
“CCTV (China Central Television) just broadcasted crypto. It’s a big deal. The Chinese-speaking communities are buzzing. Historically, coverages like these led to bull runs. Not saying the past predicts the future. And not financial advice.”
Changpeng Zhao has plenty of reasons to be bullish. This bullishness stems from the fact that the coverage and greater exposure to cryptocurrencies could lead to increased interest and greater participation in the crypto markets. According to Zhao, this recent exposure to the crypto ecosystem could act as a catalyst and drive individuals to explore and invest in cryptocurrencies driving up asset prices and increasing market capitalization. However, he added that he could not predict the future and that people should be careful when investing in crypto.
Broader Implications For Crypto
China Central Television is the largest state broadcaster in China and broadcasts an array of programs that reaches an audience of over one billion. Furthermore, the segment did not air or mention anything negative about cryptocurrencies. This is in contrast with the position and stringent regulations adopted by Chinese authorities against cryptocurrencies. This includes a complete ban on Bitcoin mining and cryptocurrency exchanges operating in China. However, ownership of crypto assets is currently permitted.
The broadcast could have significant implications for the crypto industry, both globally and in China. The exposure the segment provides could lead to increased awareness and a broader adoption and use of cryptocurrencies. Additionally, institutional investors who were watching Chinese markets and the current regulatory environment could see a ray of hope and gain some level of confidence in the market. This could lead to greater institutional adoption and capital to flow into the crypto ecosystem.
In April, the Chinese version of TikTok, Douyin, started publishing cryptocurrency price quotes in its index. Duoyin has over a billion registered users. However, the price quotes were removed and replaced with the following text just a day later.
“Unofficial digital currencies do not possess the same legal standing as fiat currencies. Please invest cautiously.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.