The People's Bank of China held a meeting to coordinate efforts to combat speculation in virtual currency trading. From today's market, the impact of BTC and ETH does not seem particularly strong. Both BTC and ETH prices have declined and then quickly rebounded, with only a slight drop.

Over the years, the Chinese government's regulation of virtual currencies has always had a short-term impact on Bitcoin's trends. These crackdowns usually lead to a drop in Bitcoin prices in the short term, but in the long term (months to years), Bitcoin prices tend to rise significantly. This is because global market factors (such as the approval of the US ETF, institutional investment, and macroeconomic stimulus) dominate the trends, and the impact of China's ban gradually diminishes.

Let's take a look at these timelines:

The Chinese government’s regulation of virtual currencies (especially Bitcoin) began in 2013, mainly through notices and joint announcements issued by the People's Bank of China (Central Bank) and other departments.

December 5, 2013

The Central Bank and five other departments jointly issued a notice (on preventing Bitcoin risks), clearly stating for the first time that Bitcoin is not currency and prohibiting financial institutions from participating in Bitcoin-related businesses. This is a landmark document in the early crackdown on virtual currency speculation.

At that time, the Bitcoin price was about $1,000. After the news broke, Bitcoin fell about 10-15% in the short term (from around $1,000 to about $850) due to initial panic.

January 5, 2017

The Central Bank held a leadership group meeting for the special rectification of internet financial risks, discussing the risks of Bitcoin and other virtual currencies, and issued a notice (on preventing the risks of token issuance financing) (formally released on September 4, but the January meeting was for preliminary coordination). Ban on ICOs (Initial Coin Offerings) and virtual currency exchanges.

At that time, the Bitcoin price was $1,013.38. After the news broke, Bitcoin fell about 20% in the short term (from around $1,000 to $800), and the ICO ban triggered sell-offs.

May 18, 2021

The Central Bank and ten departments held a special meeting to promote the rectification of internet financial risks, emphasizing the crackdown on virtual currency trading speculation. Subsequently, a notice (on further preventing and dealing with the risks of virtual currency trading speculation) was issued (formally on September 15), clarifying that virtual currency-related businesses are illegal financial activities.

At that time, the Bitcoin price was $42,909.40. After the notice was issued, Bitcoin fell about 30% in the short term (from around $43,000 to below $30,000), with multi-departmental rectifications intensifying volatility.

September 24, 2021

The Central Bank and other departments jointly issued a notice (on further preventing and dealing with the risks of virtual currency trading speculation), completely banning virtual currency trading, mining, and related services, and providing services from overseas exchanges to the domestic market is also considered illegal. This is one of the strongest crackdowns.

At that time, the Bitcoin price was $42,839.75. After the notice was issued, Bitcoin fell about 12% in the short term (from $43,000 to $38,000), and the comprehensive ban triggered global panic.

September 25, 2021

The National Development and Reform Commission and other departments issued a notice (on the rectification of virtual currency 'mining' activities), prohibiting Bitcoin mining activities, aimed at energy conservation and emission reduction as well as financial stability. This is a specific crackdown on mining. Similar to September 24, Bitcoin fell more than 10% in the short term.

October 27, 2025

Central Bank Governor Pan Gongsheng stated at the opening ceremony of the 2025 Financial Street Forum Annual Meeting that efforts to crack down on domestic virtual currency trading and speculation will continue (an informal meeting, but reaffirming the effectiveness of policies since 2017).

After the news broke, Bitcoin fell in the short term (the overall market pulled back to a low of $80,000 after the peak of around $125,000 in October), and Pan Gongsheng reaffirmed that the ban intensified recent volatility.

In the short term, after each crackdown event, Bitcoin prices have shown a 'knee-jerk' decline (5-30%), influenced by the sentiment of the Chinese market and global investor sell-offs. However, recovery usually begins within a few weeks.

In the long term, after all historical events, prices have risen significantly, mainly driven by the U.S. Bitcoin ETF (pushing new highs in 2024-2025), expectations for interest rate cuts by the Federal Reserve, and the shift of mining overseas after the ban in China (led by the U.S. and Russia). After the ban in 2021, China's mining share once dropped to zero, but by 2025 it had risen to 14%, indirectly supporting prices.

From the current market perspective, Bitcoin rose from $70,000 at the beginning of the year to a peak of $125,000 in October before pulling back (erasing some of the gains), but by November it had rebounded above $90,000, showing resilience. The market expects that the Federal Reserve's December policy will further boost.

In the long term, Bitcoin prices will continue to rise. In a bull market, negative news is a good opportunity to buy on dips, but as for the current market, it seems to have turned bearish. In a bear market, negative news is a good time to short and add to positions!