Did China Secretly Sell Its Bitcoin to Crash the Market?

For years, China has been at the centre of cryptocurrency speculation. With strict regulations banning Bitcoin mining and trading, many assumed the nation had turned its back on digital assets. But what if that was just a smokescreen? Recent whispers in the financial underworld suggest that China has quietly dumped its massive Bitcoin reserves, triggering a calculated market collapse. Is this just another wild crypto conspiracy, or is there more to the story than meets the eye?

The Vanishing Bitcoin Reserves

It is widely believed that China held approximately 194,000 BTC, primarily seized from the notorious PlusToken Ponzi scheme in 2019. This hoard was supposedly sitting in government-controlled wallets — until now. According to CryptoQuant CEO Ki Young Ju, the seized Bitcoin was suddenly transferred to exchanges like Huobi and subsequently liquidated. Why now? Why the secrecy?

Renowned Bitcoin skeptic Peter Schiff has also claimed that China liquidated its Bitcoin holdings as early as January 2025. But here’s the catch: there’s no official confirmation from Chinese authorities. Instead, we’re left with cryptic statements about these assets being moved to the national treasury — a vague term that could mean anything from cold storage to outright liquidation.

A Financial Chess Game?

If China did sell off its Bitcoin, the timing couldn’t be more suspicious. The dump coincided with major downward pressure on the market, leading to whispers of state-led manipulation. Could China have deliberately triggered a price crash to weaken the influence of Western investors?

Consider this: The US reportedly holds 207,189 BTC, surpassing China’s supposed reserves. If a financial cold war is brewing, strategically devaluing Bitcoin could be an attempt to undermine US crypto dominance before it even begins.

But Wait… Does China Still Have Its Bitcoin?

Despite these rumours, some sources maintain that China’s Bitcoin holdings remain intact. Bitcoin Treasuries still lists China as holding 194,000 BTC, contradicting claims of a sell-off. Could the Chinese government be playing both sides — publicly denouncing Bitcoin while secretly stockpiling it?

There’s precedent for this kind of financial misdirection. China has a history of publicly banning crypto while quietly benefiting from its volatility. Reports suggest that despite strict regulations, Chinese citizens continue to buy Bitcoin and Tether through underground channels. Is it really that far-fetched to think that China itself is still playing the game?

The Bitcoin Arms Race

With growing speculation that nations are stockpiling Bitcoin like digital gold, the idea of an emerging Bitcoin arms race is gaining traction. If governments see crypto as the currency of the future, controlling its supply could be the ultimate power move.

So, did China secretly dump its Bitcoin to crash the market, or is it still sitting on a mountain of digital wealth? The truth is shrouded in secrecy — but in the world of crypto, where shadow deals and financial warfare reign, nothing is off the table.

Will the USA become a crypto capital?

The Birds-Eye View

​The escalating US-China trade war, marked by President Donald Trump’s “Liberation Day” tariffs announced on April 2, 2025, introduced significant volatility into global financial markets, including the cryptocurrency sector. Bitcoin, often viewed as a digital safe-haven asset, is trading at approximately $84,575, reflecting a modest increase.

In the short term, tariffs lead to market uncertainty, prompting investors to seek more stable assets, which can result in decreased demand for riskier investments like Bitcoin. Analysts suggest that these trade policies may slow economic growth and increase inflation, factors that typically influence investor behaviour and asset allocation. ​However, some experts posit that in the long term, such economic policies could weaken USD dominance, potentially enhancing BTC appeal as an alternative store of value. The reduction in global trade due to tariffs might lead to increased inflation, which could drive interest in decentralized assets like Bitcoin.

There are certainly bigger interests at play which is somewhat at odds with Bitcoin’s purported original aim to level-out the financial system.

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