In 2021, China launched one of the harshest crackdowns on Bitcoin and cryptocurrencies, banning their trading and mining in an attempt to control financial risks and energy consumption. The Chinese Central Bank’s announcement sent shockwaves through the markets, with Bitcoin falling by over 6% in a single day. However, as of March 2025, it is clear that this ban has not stopped Bitcoin’s global rise or its influence on the digital economy. What has happened since then, and why has China been unable to curb this phenomenon?
The initial shock and resilience of Bitcoin
When China announced the ban, the impact was immediate. At the time, the country accounted for more than 60% of Bitcoin’s global hashrate — the computing power that sustains the network. The exodus of miners was massive: machines were shut down or moved to places like the United States, Kazakhstan, and Canada. The hashrate fell by more than 50% in May 2021, but the network showed its strength. By December of that year, it had recovered 93% from its lows, and today it exceeds 600 exahashes per second, an all-time high. Bitcoin’s decentralization proved that no country, not even one as influential as China, can cripple it.
The market was also quick to adapt. Although the price suffered initial dips, global investors saw the ban as an opportunity. The US became the new leader in mining, while international exchanges absorbed Chinese users who circumvented the restrictions with VPNs and offshore platforms. Instead of fading away, Bitcoin found new avenues to grow.
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China: between prohibition and curiosity
Despite the ban, China has not entirely cut ties with Bitcoin. In 2024, a Shanghai court recognized cryptocurrencies as legal property for individuals, although it maintained restrictions for businesses. This ruling suggests a tacit recognition of their existence, even under a hostile regime. Moreover, former officials such as Zhu Guangyao have urged the government to study cryptocurrencies in the face of global adoption, and there are rumors of private meetings to explore their potential. Is China quietly reconsidering its stance?
Meanwhile, the country has pushed its digital yuan, a centralized currency that contrasts with the freewheeling nature of Bitcoin. Some see this as a direct response: to control the financial narrative without ceding ground to decentralized cryptos. However, the underground interest of Chinese citizens, who continue to access Bitcoin through unregulated channels, shows that the ban has not dulled its appeal.
An unstoppable global impact
Far from weakening, Bitcoin has gained traction since 2021. Its price surpassed $100,000 in 2024, driven by institutional adoption and pro-crypto policies in places like the United States under the Trump administration. Countries like El Salvador have adopted it as legal tender, and transaction volume on the Lightning Network has grown, facilitating practical uses. China, once the epicenter of mining, no longer dictates the pace.
The Chinese ban, in retrospect, was a setback, not a brake. By shifting mining and trading to other regions, it accelerated Bitcoin’s globalization, proving its resilience to the policies of a superpower. In 2025, as the world debates strategic BTC reserves and its role as “digital gold,” China watches from afar, unable to erase its footprint.
