Bitcoin In Peril? Expert Warns Of China’s Alleged Scheme To Crash BTC To $40,000
Bitcoin (BTC) is attempting to stabilize above the $80,000 support level. Analyst Leviathan warns that China may sell its Bitcoin holdings, potentially driving the price down to $40,000. Despite publicly opposing cryptocurrency, Chinese authorities are reportedly cashing in on confiscated Bitcoin through an "underground fiscal strategy." China holds approximately 194,000 BTC, making it the second-largest government holder after the U.S. Local governments are using private firms to liquidate confiscated Bitcoin on offshore exchanges, with one firm, Jiafenxiang, facilitating over $400 million in sales. In 2023, China experienced a surge in crypto-related crimes, leading local governments to rely on revenue from fines and confiscations. There are discussions about a national policy for seized cryptocurrencies, with proposals for central bank control or a sovereign crypto fund. Hong Kong is emerging as a potential haven for China's Bitcoin due to its favorable legal framework. The situation highlights the contradiction between China's anti-crypto stance and its financial gains from cryptocurrencies. BTC is currently trading at $84,800, up 5% weekly.
