well by co exist do they mean china can use it for legitimate trades with merchants or do they mean they've bought enough now and want a quick pump before banning it again.
Why would the Chinese government manipulate the Bitcoin price?
They have better things to do than getting into something with a market cap of just 4.6 billion.
So you mean to tell me that governments have not been buying Bitcoins secretly at a low price?
Probably not, especially not large governments like the Chinese government who spend trillions of dollars every year. Compare this to the market cap of bitcoin (~4.5 billion), and you will see that it would not make any sense for them to do this, as it would not have any meaningful impact on their overall financial picture
