According to PANews, recent developments have caused significant turbulence in the cryptocurrency market. Bitcoin has experienced a notable decline, dropping from over $70,000 at the end of July to approximately $58,000 by August 16. On August 5, Bitcoin briefly fell below $50,000, marking a one-year low with a daily drop of 15%. This sharp decline resulted in over 270,000 liquidations, amounting to more than $1 billion in losses.

China has maintained a stringent regulatory stance on virtual currencies. The People's Bank of China and other departments have repeatedly issued notices to prevent and address the risks associated with virtual currency trading and speculation. These notices clarify that virtual currencies do not have the same legal status as fiat currencies and that related business activities are considered illegal financial activities. This year, various regulatory bodies across China have issued warnings, urging citizens to stay vigilant and avoid engaging in virtual currency trading, speculation, and illegal fundraising activities to protect their assets. Those involved are advised to exit these activities promptly.

Yu Jianing, co-chair of the Blockchain Committee of the China Communications Industry Association, noted that while some major economies currently adopt a relatively friendly attitude towards virtual currency assets, future policy changes could occur. Stricter regulatory measures could negatively impact Bitcoin's liquidity and market acceptance, potentially leading to significant price drops.