Billionaire Mike Novogratz says Xi Jinping's authoritarianism isn't good for bitcoin - and China's citizens will find a way around the system

• Mike Novogratz hit out at China's crypto crackdown, saying Xi Jinping's authoritarianism isn't good for bitcoin.
• "$BTC is the opposite of authoritarianism," Novogratz said in a tweet on Monday.
• China has been aggressively doubling down on its anti-bitcoin stance, causing a decline in the digital asset's value.

Billionaire investor Mike Novogratz said on Monday that China's tightening crackdown on bitcoin and President Xi Jinping's control isn't good for the digital asset.

"China news isn't good," the Galaxy Digital CEO said in a tweet. "Xi is an authoritarian leader who wants control over things. $BTC is the opposite of authoritarianism. Chinese citizens will always find a way to move assets outside the system but they are making it harder. Will take some time to play out. Keep the faith."

Novogratz's tweet suggested citizens in China will find a workaround to escape the nation's clasp over domestic banks and payment platforms, which were recently ordered not to provide crypto-related services.

The People's Bank of China said in a Monday statement it had summoned some banks, including the Commercial Bank of China and Ant Group's mobile payment platform Alipay, urging them to come down heavily on cryptocurrency trading.

Bitcoin fell 5% to its lowest since late-January of $31,400 on Tuesday, while ether fell 6% to $1,867, litecoin fell 14% to $117, and XRP fell 15% to 57 cents.

The nation has been doubling down on its anti-bitcoin stance more aggressively, warning investors against speculative trading. Earlier this month, police in China arrested more than 1,100 suspects on charges of using cryptocurrencies for money laundering and quashed 170 criminal gangs that engaged in crypto-related telecom fraud.

Separately, over 26 of the biggest bitcoin miners in Sichuan province were ordered on Friday to shut their operations. Although there is insufficient data on bitcoin mining, a study from the Cambridge University shows China accounted for 65% of global production in 2020. Sichuan is its second-biggest producer, according to Reuters.

Novogratz indicated bitcoin has more scope in countries that do not have the same kind of regime as China.

"Most countries believe in freedom," he said in a follow-up tweet. "At least in the West. It would be politically very unpopular to do what China did. Also there are tons of very influential holders in the West who are working hard at educating political officials as well as regulators."

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