<p>As cryptocurrencies reel under the global downturn, Chinese state-run newspaper Economic Daily has warned investors that the price of leading cryptocurrency Bitcoin is "heading to zero".</p>.<p>The warning came as the cryptocurrency market continued to face a meltdown with Bitcoin hovering around $21,000 per digital coin on Saturday -- a substantial drop from its record high of $68,000 in November last year.</p>.<p>"Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high," the newspaper said.</p>.<p>"In the future, once investors' confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless," it added, reports <em>South China Morning Post</em>.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/cryptos-latest-meltdown-leaves-punters-bruised-and-bewildered-1120012.html">Crypto's latest meltdown leaves punters bruised and bewildered</a></strong></p>.<p>The Chinese government banned Bitcoin mining in July last year.</p>.<p>It has plans to launch its central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY).</p>.<p>The country banned all cryptocurrency transactions last September and barred foreign crypto exchanges from operating within the country in 2018.</p>.<p>The Economic Daily earlier justified China's ban on cryptocurrency trading by taking examples of the collapse of stablecoins, terraUSD and luna whose value reached zero.</p>.<p>The price of Bitcoin tumbled to a new low of $17,958 this month, before recovering to over $20,000 this week.</p>.<p>According to analysts, Bitcoin may hit a grim $14,000 this year.</p>.<p>The likely bottom range at $14,000 would represent a drop of around 80 per cent for Bitcoin from the $68,000 all-time high.</p>.<p>According to Coindesk, Bitcoin has historically experienced periods of asymptotic price run-ups followed by steep crashes, "typically played out over several months to two years".</p>.<p>Cryptocurrency watchers refer to these periods as "cycles".</p>
<p>As cryptocurrencies reel under the global downturn, Chinese state-run newspaper Economic Daily has warned investors that the price of leading cryptocurrency Bitcoin is "heading to zero".</p>.<p>The warning came as the cryptocurrency market continued to face a meltdown with Bitcoin hovering around $21,000 per digital coin on Saturday -- a substantial drop from its record high of $68,000 in November last year.</p>.<p>"Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high," the newspaper said.</p>.<p>"In the future, once investors' confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless," it added, reports <em>South China Morning Post</em>.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/cryptos-latest-meltdown-leaves-punters-bruised-and-bewildered-1120012.html">Crypto's latest meltdown leaves punters bruised and bewildered</a></strong></p>.<p>The Chinese government banned Bitcoin mining in July last year.</p>.<p>It has plans to launch its central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY).</p>.<p>The country banned all cryptocurrency transactions last September and barred foreign crypto exchanges from operating within the country in 2018.</p>.<p>The Economic Daily earlier justified China's ban on cryptocurrency trading by taking examples of the collapse of stablecoins, terraUSD and luna whose value reached zero.</p>.<p>The price of Bitcoin tumbled to a new low of $17,958 this month, before recovering to over $20,000 this week.</p>.<p>According to analysts, Bitcoin may hit a grim $14,000 this year.</p>.<p>The likely bottom range at $14,000 would represent a drop of around 80 per cent for Bitcoin from the $68,000 all-time high.</p>.<p>According to Coindesk, Bitcoin has historically experienced periods of asymptotic price run-ups followed by steep crashes, "typically played out over several months to two years".</p>.<p>Cryptocurrency watchers refer to these periods as "cycles".</p>