Basically, China wants artificially high savings rates and for people to keep their cash in state-connected banks, which keeps the supply of money for investment high, because this is baked into their growth model. Bitcoin undermines that.
Price goes up? To the moon!
A government accepts bitcoins? It's the future!
A government doesn't accept bitcoins? They're scared, it means we're winning!
Price goes up? e-tulip, don't you see?
A government accepts bitcoins? Fools!
A government doesn't accept bitcoins? Of course! Why should they?
Just a counterpoint, the truth is probably in the middle.
Why is it discounted? Did their PE drop or what? I mean, why????
Most people who claim BTC is discounted now at $3500 probably also believe that BTC is a long-term good "investment", which would imply that they also think it's "discounted" at $5000.
I guess this is obvious to all, but there are no well-understood "fundamentals" yet for BTC.
The most charitable thing you can say is that buying at $3500 now is a better deal than buying at $3500 previously, given it's now been revealed that someone was willing to pay $5000 at one point.