Can China Drive Bitcoin Down to $40,000? New Alert Worries the Market

As Bitcoin tries to stay above the support zone of $80,000, an alert from analyst Leviathan is causing a stir in the crypto community. In a post on platform X, he claims that China is planning to sell its BTC reserves — which could drive the price down to $40,000.

Despite the official stance against cryptocurrencies, Chinese authorities are said to have found a loophole to profit from confiscated Bitcoins. According to Leviathan, this is a "subterranean fiscal strategy," operating amid legal ambiguity.

Currently, the Chinese government holds about 194,000 BTC, making it the second-largest state holder, behind only the USA. If this move actually happens, the impact on the market could be massive.

Stay alert: this could just be the tip of the iceberg.