China Rumored to Sell Bitcoin, BTC Price Predicted to Plummet to $40,000?

Jakarta, Pintu News – News is circulating that the Chinese government is preparing to sell its sizable Bitcoin (BTC) reserves. According to crypto analyst Leviathan, China has around 194,000 BTC acquired through various seizures.

If true, this would make China the second-largest Bitcoin holder in the world after the United States. This information is very important as it could have a significant impact on the price of Bitcoin (BTC) in the global market.

Check out the full analysis below!

Bitcoin Sales by China’s Local Government

Leviathan revealed that although crypto trading is illegal in mainland China, the local government has been quietly selling seized Bitcoin (BTC) through third-party intermediaries.

It was found that around $400 million had been liquidated. This selling activity has just begun and is expected to continue, which could put immense pressure on the price of Bitcoin (BTC) if not addressed soon. These sales are being conducted in secret and without adequate oversight, raising concerns about the security and transparency of the process.

Legal advisors are calling for stricter regulation of companies involved in the liquidation of these crypto assets, to ensure that no market manipulation takes place.

Also read: 7 Ways to Get Passive Income from Crypto 2025, Simple!

Potential Impact on Bitcoin Price

If China’s selling of Bitcoin (BTC) continues, it could trigger a significant price drop. Leviathan predicts that the price of Bitcoin (BTC) could fall to $40,000, especially if the market is unable to effectively absorb the large amount of sales.

This price drop will affect investors around the world and could trigger a chain reaction in other crypto markets. In addition, 2023 was noted as a year full of crypto crime in China, with over $59 billion worth of illegal activity and over 3,000 money laundering cases prosecuted.

This suggests that the amount of Bitcoin (BTC) seized could continue to grow, which means the potential for further sales that could affect the global market.

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Future Strategy and Policy

Several potential developments could affect the way China manages their Bitcoin (BTC) reserves. Seminars have been held among judges, lawyers, and police to discuss establishing a consistent national policy regarding confiscated cryptocurrencies.

Hong Kong, as a special administrative region, was also mentioned as a potential solution with its legal crypto infrastructure that could possibly be used to manage China’s crypto reserves more formally.

The use of Hong Kong will not only help in transparency and security in the sale of crypto assets, but also in ensuring that such activities conform to international standards. This could be an important step in stabilizing the price of Bitcoin (BTC) if managed properly.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Is China Dumping Bitcoin? Analyst Predicts BTC Price Crash to $40K. Accessed on April 21, 2025
• Featured Image: Generated by Ai