China's evolving cryptocurrency regulations have significantly impacted the market. The 2021 ban on crypto transactions and mining, following earlier restrictions like the 2017 ICO ban, crashed prices and drove activities underground or offshore, with Bitcoin mining dropping from 79% to nearly zero domestically. This shifted global mining dominance, notably to the U.S. However, recent signals—like state media calling Bitcoin an investment asset and courts legalizing ownership—hint at a softening stance. If China lifts its ban by late 2025, as speculated, it could unleash massive demand, boost liquidity, and drive prices up, accelerating global adoption. Yet, stricter rules, like new forex controls targeting cross-border crypto flows, may temper this. The market remains volatile, with China’s policy shifts creating both opportunities and uncertainties for investors and the broader ecosystem.