How Do Global Regulatory Policies Affect Bitcoin's Value Perception?

Hello! This is actually a very interesting question, and I'll try to explain it to you in simple terms.

You can imagine Bitcoin as a global "internet celebrity," and each country's regulatory policies are like the attitudes of major social media platforms (such as TikTok, Weibo, Facebook) towards it.

1. When major platforms strongly support (friendly policies):

Imagine if the United States (the "big brother" of the financial world) suddenly announced: "We think Bitcoin is good, and we're going to give it the green light. Everyone can openly buy and sell it, and we're even going to launch Bitcoin-linked financial products (like ETFs)."

What would happen then?

Legitimacy Gained: Bitcoin would instantly transform from a somewhat "unconventional" investment into an officially recognized "mainstream player." This would reassure many large companies and funds (i.e., institutions managing significant capital) that were previously on the sidelines.
Newcomers Flood In: Previously, many people wanted to buy but were hesitant, fearing insecurity or scams. Now, with even legitimate brokerage firms offering it, the barrier to entry and psychological hurdles for ordinary investors would significantly decrease.
Result: More people buying, more money wanting to buy, and Bitcoin's value (price) would naturally rise. This is like an internet celebrity being praised by official media; their fan base and worth would surely skyrocket.

Countries like Japan, Germany, and Switzerland are relatively friendly towards Bitcoin, having established clear regulations. This is why you see many cryptocurrency-related companies and innovations choosing to develop there.

2. When major platforms ban (tightening policies):

Conversely, if a major country, like China, announced: "Mining (producing Bitcoin) consumes too much electricity and is not environmentally friendly, so it's banned! All banks and payment institutions are forbidden from providing services for Bitcoin transactions!"

What would happen then?

Panic Selling: Users in that country would become very scared, worrying that they wouldn't be able to withdraw their money or that their trading activities would be deemed illegal. Consequently, everyone would rush to sell their Bitcoin.
Confidence Hit: Other investors globally would start to worry, "Look, such a large country is cracking down; isn't this a dangerous signal? Will my country follow suit?" This panic would spread, leading to a global sell-off.
Result: With far more sellers than buyers, the price would naturally plummet. This is like an internet celebrity being banned across all platforms; their commercial value would instantly collapse.

3. When platform attitudes are ambiguous (uncertain policies):

The most agonizing situation is "Schrödinger's regulation." This is when the government says today it will study it, and tomorrow it says a regulation might be issued, but there's no definitive word for a long time.

Markets Hate Uncertainty Most: Investors are like startled birds; any slight disturbance can trigger violent market fluctuations. A single statement from an official, or an unverified draft proposal, can send prices soaring and plummeting.
Result: Prices would be like a roller coaster in the short term, as everyone tries to guess the next policy move, leading to intense speculation between bulls and bears.

To summarize:

National regulations act like a "value amplifier" or a "value shredder."

Positive regulation (acknowledging legitimacy, establishing clear rules) provides "endorsement" for Bitcoin, attracting mainstream capital and users, and boosting its perceived value.
Negative regulation (prohibiting trading, cracking down on mining) creates panic, forcing users and capital to exit, and undermining its perceived value.
Uncertain regulation exacerbates short-term market volatility.

Because Bitcoin is global, its value isn't determined by just one country. If it's not allowed here, miners and capital can move elsewhere. This global "seesaw effect" is also what makes Bitcoin interesting and complex. I hope this explanation helps you understand!