China Bans Crypto Ownership Bitcoin Drops 1.6%

On May 30, 2025, China implemented a comprehensive nationwide ban on the personal ownership of cryptocurrencies, including Bitcoin. This new policy extends beyond previous restrictions on crypto trading and mining, now explicitly prohibiting individuals from holding any digital assets. The move underscores China's determination to centralize financial control and promote the adoption of the digital yuan, the country’s state-backed central bank digital currency (CBDC).

Following the announcement, Bitcoin's price experienced a significant drop, falling below the key support level of $107,000. The price declined to $105,488, breaking below the 50-period Exponential Moving Average (EMA) positioned at $107,601. This decline reflects a shift in short-term trend sentiment from bullish to bearish. The Relative Strength Index (RSI) dipped to 38.36, indicating weakening buying interest and nearing oversold territory. Despite the selloff, trading volume remained relatively muted, suggesting that the price action may have more room to develop if sentiment worsens. Traders are closely watching the $105,000 zone for support, with additional downside risk toward the $102,500 and $100,000 psychological levels. This price movement highlights Bitcoin's sensitivity to geopolitical developments, particularly in large markets like China.

Altcoins also followed Bitcoin’s decline, with major tokens posting heavier losses across all timeframes. XRP dropped 4.96% in 24 hours and 7.01% over the past week, trading at $2.18. Solana fell 5.75% daily and 8.75% weekly, now priced at $161.97. Cardano (ADA) also slipped 6.10% in 24 hours, bringing its weekly decline to 9.25%. Dogecoin showed one of the steepest 7-day losses at 12.69%, despite a marginal 0.19% intraday gain. Meanwhile, TRON (TRX) and BNB fared slightly better, limiting their 24-hour losses to under 2.1%. While stablecoins like USDT and USDC remained pegged close to $1, the broader altcoin sector struggled to hold support. This wave of losses underscores investor caution, especially as regulatory news from China spreads uncertainty. Some market participants view this pullback as temporary, expecting the sector to find direction based on official confirmation or denial from Chinese authorities.

This ban represents one of the strictest actions taken by China against crypto to date. By eliminating legal ownership, the government strengthens its ability to monitor capital flows and reduce reliance on decentralized financial systems. The new regulation may also push crypto users and developers to shift activity outside China, accelerating decentralization trends across the region. However, major cryptocurrencies like Bitcoin have withstood previous crackdowns. Long-term investors often treat such episodes as opportunities to re-enter the market, suggesting that the impact of the ban may be temporary. The overall market reaction underscores the importance of regulatory clarity in shaping the future of digital assets in China and beyond.