There’s actually a very clear pattern to how China regulates the crypto space—it’s like periodic cleaning, and every time it follows the same script:

News comes out, everyone panics, prices crash, then overseas capital comes in to buy the dip, and prices rebound or even go higher.

Back in 2013, the central bank said financial institutions couldn’t touch $BTC , and the price of Bitcoin dropped from $1,100 to $500, cut in half.
Just when everyone thought, “It’s over, banned by a major country,” it stabilized and rebounded two months later.

2017 was even harsher: ICOs were outright banned, and exchanges like Binance and Huobi were forced out.
BTC fell from $5,000 to $3,000, a 40% drop, but three months later it surged to a new all-time high of $20,000.
Ironically, after Binance was kicked out, it became the global leader.

The 2021 crackdown had the biggest impact, with a total ban on mining and trading. BTC dropped from $65,000 to $29,000, cut in half.
Network hashrate crashed by 40%, mining rigs were sold for dirt cheap, and many thought Bitcoin was doomed.
But then the US, Kazakhstan, and other places picked up the hashrate, and three months later BTC hit a new high of $69,000.

Now in 2024, China is still stressing that virtual currencies are illegal, but the market doesn’t really care anymore.
The leadership is completely in the US now, with ETFs propping it up, and Chinese policy has much less influence.

It’s always the same logic: short-term panic and sell-off, mid-term bubble bursting and deleveraging, long-term shift of leadership to places with clearer regulation, and in the end prices get even stronger.
It’s like a regular health check—uncomfortable during the process, but healthier as a result.