China May Secretly Hold $6 Billion in Bitcoin, Ethereum and Other Crypto – Triggering Serious Price Crash Warning
China, once a major bitcoin, ethereum and cryptocurrency player, may still hold around $6 billion in cryptocurrencies after seizing them in 2019.
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The cryptocurrency China is rumored to have came from the seizure of bitcoin, etheruem and other coins related to the $6 billion PlusToken Ponzi scheme in 2019 – with some now warning of a crypto price crash if China were to suddenly unload the coins.
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China has previously seized around $6 billion worth of bitcoin, ethereum and other cryptocurrencies … [+]
“[The] the government of China is a crypto whale,” Ki Young Ju, CEO of blockchain data analytics company Cyptoquant, posted to Twitter. “Chinese authorities seized 194,000 bitcoin, 833,000 ethereum and others from the PlusToken scam in 2019. They lost these assets worth $6 billion to the treasury.”
If China still has the bitcoin and ethereum it has seized, it will rank among the world’s largest crypto whales, eclipsing the likes of Microstrategy and Coinbase.
“Sell-side liquidity from miners, institutional investors and retail investors is next to nothing if you compare governments,” Ki Young Ju said via Twitter DM, adding in a separate Twitter post that the government of Bulgaria may hold more than 200,000 bitcoins.
Bitcoin
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The Bitcoin price has risen higher since 2017, but it has fluctuated wildly along the way and is rising … [+]
“Bitcoin fell from $30,000 to $17,000 due to luna’s sell-side liquidity,” Ki Young Ju said, pointing to the collapse of the terra luna algorithmic stablecoin ecosystem that included the Luna Foundation Guard’s stash of bitcoin designed to support the cryptocurrencies. “It was about 80,000 bitcoin, so that’s basically two times [the terra luna collapse].”
“It could be crazy,” Ki Young Ju said when asked what the effect of China selling the coins could be. “Imagine they start dumping 194,000 bitcoin to kill crypto markets.”
However, some believe China could have already unloaded the coins, points out reports from local journalists and crypto investors suggesting China may have worked with an exchange like Huobi to sell the crypto.
