The discussion surrounding whether China still holds 194,000 Bitcoin (BTC) remains a significant topic within investment circles. The potential market impact of a large-scale sale by a major nation continues to draw attention from analysts and investors worldwide. Contrary to the persistent belief in these holdings, notable figures like Wall Street veteran Peter Schiff and cryptocurrency analyst Ki Young Ju have presented a unified front, asserting that China has likely already sold its substantial cache of tokens.
The Assertion: China Has Already Sold Its Bitcoin
Peter Schiff, a long-time gold advocate and frequent Bitcoin critic, has publicly stated that China divested its Bitcoin holdings several months ago. He has used this position to counter narratives suggesting an ongoing digital asset supremacy race between China and the United States.
His views align with earlier analysis from Ki Young Ju, who suggested that China sold the Bitcoin connected to the infamous PlusToken scam as early as January. Ki based his conclusion on blockchain data, indicating that the seized BTC was moved to exchanges, including Huobi (now HTX), shortly after being confiscated.
"I believe China has already sold the 194,000 Bitcoin," Ki stated. "The BTC seized from PlusToken in 2019 was sent to Chinese exchanges. While the Chinese government stated these assets were 'transferred to the national treasury,' they never clarified if they were sold." He further emphasized his trust in on-chain analytics, which he says tells a different story, indicating the funds were liquidated using mixers and distributed across exchanges in 2019.
The Chinese government has never officially confirmed this sale nor provided a detailed account of the current status of these funds.
Contradicting Public Data and Market Narratives
If these analysts' claims are accurate, they directly contradict widely circulated public data, reigniting the debate over whether China remains a major Bitcoin holder. Schiff has also criticized the popular theory of a "Bitcoin arms race" between China and the U.S., arguing that such narratives are primarily designed to inflate Bitcoin's price.
According to his analysis, China shows little interest in competing for cryptocurrency dominance and continues to prioritize gold as its primary store of value. This perspective challenges a core belief held by some digital asset enthusiasts.
Bitcoin's Market Cycle and Price Trajectory
Beyond the speculation on national holdings, Bitcoin's market activity continues to follow its well-documented four-year cycle, characterized by sharp price appreciations followed by corrections. The cryptocurrency demonstrated impressive growth throughout 2023, although its yearly performance slowed in 2024.
The start of 2025 presented its own challenges. Bitcoin experienced a downturn in February before showing signs of a modest recovery in March. Most analysts anticipate further volatility in the near term but maintain a bullish outlook for the long-term upward trend.
The Role of U.S. Politics and Policy
The political landscape in the United States has played a crucial role in shaping Bitcoin's recent trajectory. Since the inauguration of President Trump, his administration has implemented several policies supportive of cryptocurrency, including the establishment of a national Bitcoin reserve.
It is important to note that this reserve currently consists solely of digital assets seized by the government. It remains unclear whether or when the U.S. government will actively begin purchasing Bitcoin for strategic holdings, a move that would significantly alter the market dynamic.
A Look Back at China's Crypto History
The history of cryptocurrency in China predates events like the PlusToken scam or the rise of exchanges like Binance. It can be traced back to 2012 when a user known as Friedcat posted on BitcoinTalk, announcing plans to start a company building ASIC hardware for Bitcoin mining.
In a curious development, one of the old Bitcoin addresses associated with Friedcat became active on November 5, 2024, following the U.S. presidential election. The address transferred over 206 BTC, valued at approximately $19.6 million. This transaction marked the first major movement from that wallet in seven years and nearly emptied its contents, sparking discussion among crypto historians.
👉 Explore more on-chain analysis strategies
Frequently Asked Questions
Does China still own 194,000 Bitcoin?
There is no official confirmation. While public data suggests the holdings exist, some analysts, using on-chain data, believe China sold the Bitcoin seized from the PlusToken scam years ago.
What was the PlusToken scam?
PlusToken was a large-scale Ponzi scheme that defrauded investors of billions of dollars in cryptocurrency. Chinese authorities seized a significant amount of Bitcoin from the operation in 2019.
How would a sale of 194,000 BTC affect the market?
A sale of that magnitude could create substantial selling pressure, potentially leading to a sharp, short-term price decrease due to the sudden increase in market supply.
What is the U.S. national Bitcoin reserve?
It is a reserve of Bitcoin established by the U.S. government under the Trump administration. It currently contains only seized digital assets and does not involve actively purchased BTC.
Why is on-chain data important for Bitcoin analysis?
On-chain data provides a transparent, immutable record of all transactions on a blockchain. Analysts use it to track large movements of funds, identify potential selling or buying pressure, and verify claims about asset ownership.
What is a typical Bitcoin market cycle?
Bitcoin has historically experienced a four-year cycle, often linked to its halving events. This cycle typically includes a period of rapid price increase (bull market), followed by a decline (bear market), and then a period of accumulation before the next cycle begins.