What have been the impacts of the three historical crackdowns on cryptocurrency on the market? They occurred on September 4, 2017, May 18, 2021, and November 28, 2025. After the announcement on September 4, 2017, Bitcoin dropped from 5000 to 3000, a decline of 30%. The consequence was that many exchanges closed down, and the direct fiat purchasing channels for Bitcoin disappeared. On May 18, 2021, Bitcoin dropped from 60,000 to 30,000, a 50% decline, which had a significant impact on the market. Historically, this drop was substantial. Recently, Bitcoin plummeted from 91,000 to 90,800, a drop of about 0.2%. These crackdowns have had little impact on the crypto market, so people no longer need to pay attention to whether announcements are made; it is more important to focus on U.S. policies and funds' influence on the market. China no longer has any influence over this market, as it is completely disregarded. Looking in detail, the first crackdown was in 2017, targeting the severing of financing and trading due to rampant ICOs, where any white paper could lead to skyrocketing prices on exchanges. It was too easy to make money back then, and speculation was simple. Then, any institution was prohibited from financing tokens, exchanges were shut down, and fiat could not directly be exchanged for cryptocurrencies. The second crackdown was on May 18, 2021, mainly targeting payment channels, where banks could not provide funds for the crypto market, reiterating that virtual currencies are not money. Another crucial point was the comprehensive crackdown on the mining industry. For example, at that time, miners had just invested in small power plants in Sichuan, with investments in the hundreds of millions for Bitcoin mining sites, but within days, they were shut down, resulting in significant losses. After 2021, domestic mining was completely expelled, mostly relocating to the third world or Russia, including the U.S. and Canada. Currently, the U.S. is the largest market for computing power, but it is said that China’s computing power has returned to third place. What is the reason for this? I believe many people understand. This is the third crackdown, which recently occurred on November 28, 2025. The current goal is still a comprehensive crackdown, but it has almost no influence on the market; there is little volatility. However, I think what everyone in the crypto world needs to pay attention to is the redefinition of stablecoins and virtual currencies as illegal financial activities, emphasizing cross-border transfers, over-the-counter trading, and stablecoin money laundering. I believe it is important that holding crypto assets or trading assets is not a problem and has no impact on individuals. However, if you want to deposit or withdraw funds, with the current anti-fraud powers being very strong, it’s easy for all your cards to be frozen. There has been an approval from above, so I think it has little impact on trading, but it may significantly affect your deposits and withdrawals. Therefore, in the future, try to find acquaintances for deposits and withdrawals, such as exchanges or friends you often trade with, even if it means paying a few extra points in fees. Try to find familiar people because if issues arise, they are easier to resolve. It is very necessary to get a few Hong Kong cards and use the Hong Kong dollar withdrawal channels; this is something you can research yourself. $BTC
