There is a rumor that China could possibly be making ready to offload substantial BTC reserves. Chinese authorities, in accordance to cryptocurrency analyst Leviathan, have about 194,000 BTC that they’ve acquired by way of numerous seizures. China is allegedly the second-largest authorities Bitcoin holder after the United States. This is critical because it may impression the BTC value.
Local Chinese Governments Allegedly Selling Bitcoin
The analyst states that regardless of cryptocurrency buying and selling being unlawful in mainland China, native governments have been quietly promoting confiscated Bitcoin by way of third-party intermediaries. As per his findings, $400 million has been allegedly liquidated. This promoting exercise is described as “only beginning” and will majorly impression Bitcoin’s value if it continues or accelerates.
🚨 China plans to dump $BTC to $40K
They already offered it for $400M and it is solely starting
I’m risking rather a lot by revealing this, however right here you go
Here’s what China is secretly doing and it’ll have an effect on on BTC👇🧵 pic.twitter.com/ponfsFDvFM
— Leviathan (@TechLeviathan) April 17, 2025
According to the analyst’s claims, Chinese native governments have developed a system to capitalize on confiscated cryptocurrency regardless of the nation’s official ban on crypto buying and selling.
These authorities are reportedly utilizing an unofficial “backdoor” methodology to promote seized Bitcoin on overseas exchanges by way of middleman corporations. They are allegedly changing the proceeds into yuan earlier than transferring the funds again to metropolis finance departments.
The report places the deal with Jiafenxiang, described as a little-known Shenzhen-based firm. The firm is alleged to have processed greater than $400 million in cryptocurrency gross sales on behalf of a number of metropolis governments.
The association is alleged to exist in a authorized grey space. The officers additionally referred to it as a “temporary” and “pragmatic” measure, whereas authorized students contend it places China’s cryptocurrency ban immediately in contravention.
The findings come after latest stories that China plans to sell 15,000 Bitcoin on offshore exchanges. This state of affairs has reportedly developed due to two elements. One is a scarcity of nationwide rules relating to seized cryptocurrency and rising monetary strain on native governments.
With no standardized protocol for dealing with confiscated digital property, every province or metropolis is alleged to be improvising its personal strategy. Simultaneously, Chinese municipalities are described as “strapped for funding,” with public revenue from fines and confiscations reaching 378 billion yuan in 2023.
China’s Sale Could Send BTC Price To $40,000
The professional estimates that the yr 2023 was historic when it comes to crypto crimes occurring in China, with a complete quantity of greater than $59 billion in worth related to illicit actions, and over 3,000 cash laundering instances being prosecuted. These enforcement operations are stated to additional swell the stock of confiscated Bitcoins for potential sale.
The analyst shares a number of potential developments that would have an effect on how China manages its alleged Bitcoin holdings and the impression on the BTC value. According to the report, a number of seminars have been held amongst judges, legal professionals, and police. This was executed to focus on constructing a constant nationwide coverage on seized cryptocurrency.
Hong Kong can also be cited as a potential resolution, with its authorized cryptocurrency infrastructure presumably offering cowl for mainland operations. The particular administrative area already permits ETFs for Bitcoin and Ethereum. This may theoretically present a framework for dealing with China’s reported crypto hoard in a extra formal approach.
Legal advisors are stated to be calling for the regulation of third-party companies concerned in cryptocurrency liquidation. Currently, there’s allegedly no oversight relating to how a lot is offered or the safety procedures concerned.
One lawyer even described the market as “lucrative and totally unregulated.” These considerations have prompted requires an asset disposal company underneath central management that might audit gross sales, confirm exchanges used, and forestall potential corruption.
For Bitcoin markets, the implication is that continued promoting from this alleged 194,000 BTC may exert downward strain on costs. He acknowledged that it may doubtlessly trigger the Bitcoin price to fall to $40,000.
Vignesh Karunanidhi
Vignesh Karunanidhi is a seasoned crypto journalist with almost 7 years of expertise within the cryptocurrency business. He has contributed to quite a few publications, together with WatcherGuru, BeInCrypto, Milkroad, and authored over 10,000 articles
Disclaimer: The offered content material could embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty on your private monetary loss.
