ISTANBUL
China’s central bank, the People’s Bank of China (PBoC), has again underscored that all digital asset activities remain illegal in the country, intensifying its long-standing crypto crackdown and sending shockwaves through global markets. The renewed warning triggered a sharp selloff, pushing Bitcoin down 5% in just 24 hours.
The PBoC pointed to risks tied to crypto assets — particularly stablecoins — and stressed that virtual currencies cannot function as legal money. The bank vowed to maintain strict oversight as part of its efforts to curb financial crimes linked to digital assets.
Following the announcement, the total crypto market value slid to $2.93 trillion, while Bitcoin briefly dipped below $92,000.
Bitcoin had started the year at around $93,425 but tumbled to nearly $74,500 in April amid volatility fueled by US President Donald Trump’s aggressive tariff measures. The coin later rebounded as market uncertainty eased and the Federal Reserve began cutting rates, soaring to an all-time high of $126,199 in October — marking a 35% annual gain before its recent correction.
By Nov. 21, however, Bitcoin had dropped to $80,667, its lowest level since April, and continued sliding, erasing all of its yearly gains. Ethereum mirrored the trend, starting 2024 at $3,345 and falling to $2,839, losing more than 6% for the year.
CoinTR CEO Ali Eselioglu told Anadolu that although China has banned crypto trading and mining, Hong Kong continues to maintain a more flexible regulatory landscape.
He said Beijing’s interventions in tokenization initiatives and stablecoin experiments show its intent to keep the sector tightly controlled while expanding its own state-backed digital currency, already used by hundreds of millions.
“While China upholds a restrictive stance toward cryptocurrencies, it is simultaneously developing a centralized alternative,” Eselioglu said.
He added that the PBoC’s declaration labeling cryptocurrencies and stablecoins as illegal payment tools created fresh uncertainty in global markets.
“When such statements come from a major power like China, they can temporarily dent risk appetite. China’s announcement certainly contributed to Bitcoin’s pullback,” he said.
Still, Eselioglu emphasized that China’s posture is not new, calling it a continuation of the regulatory framework set in motion in 2021. In the long run, he said, the trajectory of Bitcoin and other digital assets will be driven more by global macroeconomic conditions and US-led regulatory developments than by Beijing’s ongoing restrictions.
