- China plans to sell 15,000 seized Bitcoins worth $1.2 billion on offshore exchanges to fund local government projects.
- The move could increase market sell pressure and push Bitcoin’s price down toward $80K.
China is reportedly preparing to offload a massive trove of seized —15,000 BTC worth approximately $1.2 billion—on offshore exchanges. The move is aimed at injecting much-needed liquidity into local governments struggling with a deepening fiscal crunch. But the timing and scale of the sale could send shockwaves through global crypto markets.
Since banning cryptocurrency trading in 2021, Chinese authorities have been sitting on digital assets acquired through seizures tied to illicit activities. With no official framework in place for handling these assets, the current decision marks a dramatic shift in strategy. Court documents reveal that municipal governments are seeking approval to partner with private firms to conduct the sale overseas, bypassing domestic restrictions.
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The announcement has already stirred controversy. Legal experts like Professor Chen Shi of Zhongnan University argue that the offshore sale via private companies contradicts China’s own crypto ban. Others, including NYU Law School’s Winston Ma, are advocating for a centralized Bitcoin Reserve modeled after U.S. practices—believing this would provide more control and potentially greater value over time.
While the legal debate simmers, the market reaction is heating up. Bitcoin, currently trading around $83,000, has dipped nearly 2% amid fears of the looming sale. Analysts warn that flooding the market with 15,000 could increase selling pressure, pushing prices toward the $80,000 mark. Compounding the uncertainty are broader macroeconomic tensions—including a fresh 245% tariff imposed by the U.S. on Chinese goods, a move that could exacerbate risk-off sentiment in global markets.
Still, not all outcomes are bearish. If Chinese courts block the sale or pivot toward establishing a state-run Reserve, could rebound quickly. Enthusiasm is already high, with institutional players like MicroStrategy fueling speculation of a price rally toward $90K.
For now, all eyes are on Beijing. Whether China triggers a crypto price correction—or inadvertently sets the stage for next bull run—remains to be seen.
