Bitcoin as Government Assets: The Truth About China's 194,000 Holdings

Although cryptocurrency regulations are strict in China, the government agencies actually hold a significant amount of Bitcoin. According to multiple sources, China's Bitcoin holdings amount to approximately 194,000 coins, making it the second-largest government-level holding after the United States.

**Accumulation from Confiscated Assets**

This enormous amount of Bitcoin primarily comes from assets gradually confiscated during the handling of fraud cases between 2018 and 2020. Through asset seizures related to criminal activities, the Chinese government has continuously acquired cryptocurrencies. With the current BTC price near $92,160, the value of these assets is extremely substantial.

**Potential Market Impact**

The reason why financial experts and the U.S. Treasury are paying close attention is clear. If China decides to sell these Bitcoins on the market, it could cause significant fluctuations in the BTC market. The sale volume of about 194,000 coins represents a scale that cannot be ignored relative to current market liquidity, posing a risk of downward price pressure.

**Current Developments**

However, there have been no reports of on-chain activities suggesting such sales recently. How the Chinese government manages these assets and how they might be utilized in the future remains largely unclear. The contradictory situation of holding assets while cryptocurrency trading is banned continues to attract the interest of market participants.