Bitcoin tumbles after China reinforces crypto ban
Beijing’s renewed warning triggers a sharp sell-off as officials push digital yuan over private cryptocurrencies
ISTANBUL (AA) — Bitcoin plunged more than 5% in the past 24 hours after the People’s Bank of China (PBoC) reiterated that all digital asset activities remain illegal in the country, sending shockwaves through global crypto markets.
The central bank said cryptocurrencies — including stablecoins — pose financial risks and cannot be used as money, adding that it would maintain strict oversight as part of its broader campaign against illegal financial activity.
Following the announcement, the total crypto market value slipped to $2.93 trillion, while Bitcoin fell below $92,000.
Bitcoin began the year around $93,425 but slumped to about $74,500 in April amid uncertainty triggered by President Donald Trump’s sweeping reciprocal tariffs. It later rebounded as the tariff concerns eased and the US Federal Reserve started cutting rates, pushing Bitcoin to an all-time high of $126,199 in October — a gain of roughly 35% at the time.
But momentum reversed in November. Bitcoin slid to $80,667 on Nov. 21, its lowest level since April, and has now erased all its yearly gains.
Ethereum tracked a similar decline, starting 2025 at $3,345 and falling to $2,839, losing more than 6% over the year.
Ali Eselioglu, CEO of Turkish crypto exchange CoinTR, said the latest drop reflects China’s long-running hardline stance. While Beijing bans crypto trading and mining, Hong Kong continues to pursue a more open regulatory approach.
He noted that China has tightened oversight of tokenization projects and corporate stablecoin initiatives, even as the digital yuan — its state-backed alternative — expands to hundreds of millions of users.
“China is maintaining a cautious and prohibitive stance toward cryptocurrencies while building a centralized alternative,” Eselioglu said, adding that the PBoC’s renewed warning created fresh uncertainty in global markets.
“Statements from a superpower like China can dampen risk appetite in the short term,” he said. “But over the medium and long term, Bitcoin and other cryptocurrencies will move in line with global macroeconomic trends and U.S.-focused regulatory developments.”
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