- China maintains a significant Bitcoin reserve despite crypto restrictions.
- 194,000 BTC held mainly from fraud seizures.
- Potential market influence if liquidated.
China still holds approximately 194,000 BTC from anti-fraud operations, despite crypto trading bans, confirming its position as the second-largest national bitcoin holder after the United States as of September 2025.
China’s BTC holdings at risk for market price manipulation, sparking concerns over Bitcoin’s decentralized nature and governmental influence.
China’s substantial Bitcoin reserve stands at 194,000 BTC, primarily acquired through asset seizures related to fraud. This position makes China the second-largest governmental holder of Bitcoin, following the United States.
Involved entities include the Chinese government, whose actions stem from fraud investigations between 2018 and 2020. These holdings remain mostly unliquidated, raising concern over market power and decentralization.
The immediate effect involves potential market vulnerability, as China’s large reserve acts as an overhang. This reserve could affect prices if they choose to sell, influencing market dynamics significantly.
Financial implications include latent market risk tied to government decisions. The U.S. Treasury monitors these reserves closely due to potential pricing impacts similar to those seen with Germany’s BTC sales.
No on-chain evidence suggests imminent sales or shifts in China’s BTC holdings. Experts emphasize vigilance regarding this substantial cache due to its potential market impact.
Market experts like Haider Rafique have stressed the risk of government holdings. Historically, large sales by state actors can depress prices, with current trends suggesting close monitoring of on-chain activities.
Scott Bessent, US Treasury Secretary, confirmed, “China, with around 194,000 BTC from fraud seizures, and the UK, holding 61,000 BTC,” as the official figure for China’s bitcoin reserve.
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