CryptoQuant CEO Ki Young Ju has made a controversial claim that China sold its bitcoin reserves amounting to 194,000 BTC. This statement has raised concerns in an already uncertain BTC market, amidst a significant price decline.
China's BTC Sale: A Bold Claim
In a recent post on X, Ki Young Ju stated that China likely sold its 194,000 BTC reserves, contradicting official claims that these bitcoins were transferred to the state treasury. Ju highlighted that the transactions were conducted through exchanges like Huobi, utilizing mixers, which he believes points to a clear intention to liquidate the assets.
These claims have reignited questions surrounding the bitcoins confiscated during the 2019 PlusToken scam. Ju questions the narrative of state-held reserves, asserting that China sold these assets to secure liquidity.
Dispute Over Bitcoin Holdings
While Ju asserts that China has sold its entire BTC reserves, other data suggests otherwise. Some reports indicate that China still holds 194,000 BTC, making it the second-largest bitcoin holder after the United States. Ju, however, stands firm on his blockchain analysis, dismissing official reports.
He stated:
"On-chain data tells a different story. They sold everything using mixers to distribute funds across exchanges. I trust blockchain data, not the Chinese government."
This discrepancy underscores the lack of transparency in government cryptocurrency transactions, further fueling market concerns.
Global BTC Market and Growing Adoption
Despite these reports, bitcoin remains a focal point for global investors. Recently, the United States sold $6.7 billion worth of bitcoin, contributing to market volatility and weakening investor confidence.
If it is confirmed that China has sold its bitcoin reserves, it could have a further impact on BTC's price trajectory. Simultaneously, bitcoin adoption continues to grow, with the U.S. even considering the creation of a strategic bitcoin reserve, signaling institutional interest in the cryptocurrency.
Current BTC Status
Bitcoin's price has dropped by 2.5% today, trading at $102,323, with a daily high of $105,500 and a low of $101,500. Trading volume fell by 19% to $60 billion, while open interest in bitcoin futures declined by 2%.
Bitcoin's Outlook
Speculation around China's bitcoin reserves adds further uncertainty to an already volatile market. While Ju’s theory is supported by blockchain data, the lack of official confirmation keeps the debate alive.
Despite these concerns, market experts remain optimistic about bitcoin's long-term potential. Although U.S. President Donald Trump did not mention cryptocurrencies during his inauguration, his administration is expected to contribute to increased investments in the sector.
As BTC continues its downward trend, investors will closely monitor key support levels in the coming days.
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