🚨China Bans Crypto Completely - Markets
Crash
On May 31, 2025, China imposed a full ban on all crypto activities, including trading, mining, and personal ownership of assets like Bitcoin (BTC) and Ethereum (ETH). This escalates earlier restrictions and aims to push China's digital yuan while tightening financial control.
Market Impact:
•BTC dropped from ~$111K to ~$104.5K
•ETH and altcoins like XRP, SOL, ADA also saw major losses
•Crypto market cap plunged over 10% in 24 hours
•Over $750M in long positions were liquidated
Why the Ban?
1. High energy use from mining
2. Strengthening state financial control
3. Crypto tied to illegal transactions
4. Promoting the digital yuan (CBDC)
Global Reactions:
Investor panic, especially in Asia
BTC hashrate dropped as Chinese miners shut down
Other countries may follow with stricter regulations
Market volatility expected to rise
Experts Say:
Some see this as a market correction
Others worry about slowed crypto adoption in Asia
Advocates emphasize the need for decentralized finance
This is a major turning point for crypto in 2025, with lasting global effects on both markets and regulation.
