China's government has likely sold nearly $20 billion worth of Bitcoin, according to CryptoQuant CEO Ki Young Ju.
China's government has likely sold nearly $20 billion worth of Bitcoin, according to CryptoQuant CEO Ki Young Ju. This Bitcoin was seized from the PlusToken Ponzi scheme in 2019, which swindled investors out of billions of dollars. Ju speculates that the nearly 194,000 BTC was sold over time through exchanges like Huobi. Chinese authorities had previously stated that the seized cryptocurrency was "transferred to the national treasury" but did not clarify whether it was sold or simply stored. Ju expressed doubt about the censored government holding a cryptocurrency like Bitcoin, stating, “A censored regime holding censorship-resistant money feels unlikely.”
Despite the sale, Bitcoin's price remained relatively stable, staying above $101,000 as of Jan. 23. However, in the 24 hours leading up to 12:22 a.m. UTC, Bitcoin's price fell by over 3.7%, according to CoinMarketCap data. This decline could be attributed to concerns about tightening monetary policies and potential global interest rate hikes, which have created short-term bearish sentiment. Ryan Lee, Chief Analyst at Bitget Research, noted that while these concerns may cause some pressure on Bitcoin's price, institutional buying could help stabilize it. He highlighted the role of firms like World Liberty Finance in supporting the price.
Bitcoin's resilience can be partly attributed to continued institutional interest. BlackRock, the world’s largest asset manager, has been steadily purchasing Bitcoin, buying the cryptocurrency for five consecutive trading days leading up to Jan. 21. The firm made its largest purchase of the year on that day, acquiring $600 million worth of Bitcoin, according to Arkham Intelligence. This buying spree has helped keep Bitcoin’s price steady despite the sell-off from China.
The market is also watching the U.S. Federal Reserve's monetary policy. As concerns over interest rate hikes persist, investors are looking for signs that the U.S. might cut rates in the coming months. According to the CME Group's FedWatch tool, markets expect an interest rate cut by June 18, which could affect Bitcoin's price in the near term.
The sale of the PlusToken Bitcoin by China has not dramatically impacted the price of Bitcoin, thanks to ongoing institutional support. As the cryptocurrency market navigates concerns over regulation and global economic conditions, institutional interest, especially from firms like BlackRock, continues to play a significant role in stabilizing Bitcoin’s price.
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