China Reasserts Stance Against Digital Assets
This renewed insistence on its longstanding crypto prohibition triggered a notable downturn across the cryptocurrency sector, causing a market-wide decline and pushing Bitcoin down by 5% over the past day.
The PBoC emphasized the dangers tied to crypto holdings—particularly those involving stablecoins—as justification for its position, stressing that virtual currencies cannot serve as functional money in the marketplace.
The institution also pledged to sustain rigorous monitoring of cryptocurrency-related activities as part of its efforts to combat illicit behavior.
Following China’s announcement, the aggregate value of the crypto market slid to $2.93 trillion, while Bitcoin dipped beneath $92,000.
Bitcoin began the year near $93,425 but tumbled to around $74,500 in April after US President Donald Trump introduced sweeping reciprocal tariffs that stirred considerable uncertainty.
The cryptocurrency later rebounded as tariff concerns eased and the US Federal Reserve initiated its rate-cutting phase, ultimately climbing to an all-time peak of $126,199 in October. At that juncture, Bitcoin’s yearly increase was approximately 35%.
However, the world’s most prominent digital coin subsequently reversed course, sinking to $80,667 on Nov. 21—its lowest point since April—and dropping further afterward, effectively erasing its gains for the year.
Ethereum mirrored this pattern. It opened the year at $3,345 before decreasing to $2,839, leaving the second-largest cryptocurrency with a yearly loss exceeding 6%.
Ali Eselioglu, CEO of the Turkish crypto exchange CoinTR, told a news agency that although China has prohibited both crypto trading and mining, Hong Kong maintains a comparatively more permissive regulatory environment.
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