China Sends Shockwaves Through Crypto Markets With Total Ban on Bitcoin, Ethereum, and Mining
May 31, 2025 — In a landmark move, China has enacted a sweeping ban on all cryptocurrency-related activities, including trading, mining, and personal ownership of digital assets such as Bitcoin (BTC) and Ethereum (ETH). This new directive significantly expands upon previous restrictions, signaling Beijing’s intensified efforts to consolidate financial oversight and advance the adoption of its central bank digital currency—the digital yuan.
📉 Immediate Market Impact: A Steep Decline
Bitcoin (BTC): Dropped sharply from around $111,000 to approximately $104,500 amid a wave of panic selling.
Current price: $103,798.37 (+0.26%)
Ethereum (ETH): Also took a hit, exacerbating the broader market downturn.
Current price: $2,487.48 (−1.37%)
Altcoins: Major altcoins like XRP, Solana, and Cardano registered heavy losses.
Index price: $0.02649 (−0.11%)
Total Market Cap: The global crypto market capitalization fell by more than 10% within 24 hours of the announcement.
Liquidations: Over $750 million in leveraged long positions were wiped out as traders scrambled to exit the market.
⚠️ Key Drivers Behind the Ban
1. Environmental Concerns: The energy-intensive nature of Bitcoin mining is at odds with China’s climate goals.
2. Financial Oversight: Authorities are seeking to eliminate systemic risks posed by decentralized digital currencies.
3. Crackdown on Illicit Activity: The government links crypto to money laundering and other illegal financial flows.
4. Digital Yuan Strategy: With its own CBDC in development, China aims to eliminate competition from private digital currencies.
🌍 Global Repercussions
Investor Reaction: The announcement sparked widespread sell
-offs, especially across Asian markets.
**Mining
