Did China Sell Its Bitcoin Reserves? Impact on the Crypto Market in 2025
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China has been seen as one of the biggest holders of Bitcoin, with estimates suggesting it owns hundreds of thousands of BTC. However, recent statements from experts, including Ki Young Yu, CEO of Cryptoquant, challenge this idea.
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Yu believes the widely believed figure of 194,000 BTC may be outdated, as he thinks China may have sold off its Bitcoin reserves in 2019. If this is true, it could change how we view China’s role in the global cryptocurrency market.
China Likely Sold Seized Bitcoin from Plustoken Scam, On-Chain Data Suggests
In 2019, Chinese authorities seized a major amount of Bitcoin during their crackdown on the Plustoken Ponzi scheme, one of the largest cryptocurrency frauds in history. According to Yu, this seized Bitcoin was transferred to Chinese exchanges like Huobi, where it was mixed and redistributed. He argues that this distribution process strongly suggests China likely sold off the Bitcoin rather than simply holding it for future use.
Yu’s observations are based on on-chain data, which seems to support the idea that the Bitcoin was sold. The use of mixing techniques and multiple exchanges to move the funds indicates that the Bitcoin wasn’t held as part of a long-term reserve strategy. Instead, it was likely sold off and converted into other assets.
Is China Still a Major Player in Bitcoin?
However, the idea that China is still one of the largest holders of Bitcoin has been increasingly questioned. Industry figures like Sani, founder of Time Chain Index, have publicly dismissed this belief. Sani has pointed out the lack of verifiable evidence supporting the claim that China still holds any of the confiscated Bitcoin. He challenges anyone who believes this to provide evidence in the form of BTC wallet addresses that can be linked to Chinese authorities.
The skepticism surrounding China’s Bitcoin reserves has grown stronger in recent years. As global interest in Bitcoin and other cryptocurrencies has surged, many in the crypto community have scrutinized the origins and ownership of large Bitcoin holdings. The mystery surrounding China’s role in the Bitcoin market, particularly in light of the Plustoken scandal, highlights the complexity and uncertainty that surrounds Bitcoin ownership on a global scale.
Why This Matters for the Crypto Market
The possibility that China no longer holds a huge amount of Bitcoin has big implications for the global cryptocurrency market. China has long been considered one of the biggest “whales” in the Bitcoin market, meaning it held a large amount of the digital currency. If it has sold off its Bitcoin, it would remove a major player, which could reduce the huge price swings that happen when a large amount of Bitcoin is suddenly moved or sold. This shift could lead to more stable market behavior and open the door for other players, like El Salvador, corporate treasuries, or even other countries, to step in and fill the gap.
In addition, the speculation over China’s Bitcoin holdings also points to larger geopolitical factors that are influencing the cryptocurrency market. Countries and governments are increasingly using Bitcoin as a hedge against inflation, economic instability, or sanctions, and China’s shift could signal changes in how other nations view digital assets.
The ongoing uncertainty surrounding China’s involvement in Bitcoin adds to the broader global tensions, which continue to impact the price and adoption of Bitcoin worldwide. This all underscores how deeply cryptocurrencies are tied to global politics and financial strategies.
