- China reportedly banned individual crypto holdings, intensifying its crackdown and boosting the digital yuan agenda.
- Bitcoin fell below key support at $107K, with RSI nearing oversold territory and volume showing limited recovery.
- Altcoins like XRP, Solana, and Cardano posted deeper losses, while stablecoins held steady amid growing regulatory uncertainty.
On May 30, 2025, China introduced a new nationwide ban prohibiting the personal ownership of cryptocurrencies, including Bitcoin, according to a report by Binance. The updated policy expands earlier restrictions on crypto trading and mining, now outlawing even individual holdings of digital assets.
The move signals a deeper commitment by Chinese authorities to centralize financial control and promote the adoption of the digital yuan, the country’s state-backed central bank digital currency (CBDC).
Bitcoin Dips Below Key Support After China Crypto Ban Report
Following the unverified report about China banning personal crypto holdings, Bitcoin’s price dropped sharply, confirming immediate market reaction. As shown on the 4-hour BTC/USD chart from May 30, 2025, Bitcoin declined to $105,488, falling below the 50-period Exponential Moving Average (EMA), currently positioned at $107,601.
The price fell over $2,000 from its local high earlier in the week. Selling pressure increased, and Bitcoin’s candles turned red consistently across the last sessions of May. The drop below the EMA reflects a break in bullish momentum, shifting short-term trend sentiment to bearish.
At the same time, the Relative Strength Index (RSI) dipped to 38.36, below the neutral 50 level. This signals weakening buying interest, nearing oversold territory, which typically starts around the 30 level. However, with the RSI still above that zone, there remains room for further downside.
Trading volume remains relatively muted despite the selloff, indicating that this price action may have more room to develop if sentiment worsens. Traders are likely watching the $105,000 zone for support, with additional downside risk toward the $102,500 and $100,000 psychological levels.
The latest price movement shows how sensitive Bitcoin remains to geopolitical developments, especially in large markets like China.
Altcoins Slide Sharply After China Crypto News, XRP and Solana Lead Losses
Altcoins followed Bitcoin’s decline after the China crypto ban report, with major tokens posting heavier losses across all timeframes. The market saw red across the board, especially among tokens historically vulnerable to regulatory pressure.
XRP dropped 4.96% in 24 hours and 7.01% over the past week, trading at $2.18. Solana fell harder, down 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.
Still, some market participants view this pullback as temporary. As volatility settles, analysts expect the sector to find direction based on official confirmation or denial from Chinese authorities.
China’s Harshest Crypto Ban Yet May Drive Users Offshore, But Bitcoin Holds Ground
This ban is 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.
Still, major cryptocurrencies like Bitcoin have withstood previous crackdowns. According to the report, long-term investors often treat such episodes as opportunities to re-enter the market.
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