China sold $20B in Bitcoin From PlusToken Seizure: CryptoQuant CEO
The Chinese government has reportedly sold nearly $20 billion worth of Bitcoin (BTC), creating significant selling pressure on the cryptocurrency market, according to Ki Young Ju, CEO of blockchain analytics platform CryptoQuant.
The Bitcoin stash, originally confiscated from the infamous PlusToken Ponzi scheme in 2019, was likely liquidated through cryptocurrency exchanges such as Huobi, as per Ju’s analysis shared on Jan. 23.
"China has already sold 194K Bitcoin, in my opinion," Ju wrote on X, formerly Twitter. He also noted that while the Chinese Communist Party stated the crypto had been "transferred to the national treasury," they did not confirm whether it had been sold. Ju added, "A censored regime holding censorship-resistant money feels unlikely."
Bitcoin’s Resilience Amid $20B Selloff
Despite this massive selloff, Bitcoin managed to hold above the $101,000 mark on Jan. 23. However, Cointelegraph Markets Pro data showed a 3.7% dip in Bitcoin’s price over the previous 24 hours.
Bitcoin’s ability to maintain stability during such heavy selling activity can be attributed in part to institutional interest. BlackRock, the world’s largest asset manager, has been purchasing Bitcoin for five consecutive trading days, according to Farside Investors. On Jan. 21, BlackRock’s Bitcoin ETF made its largest purchase of the year, acquiring $600 million worth of the cryptocurrency.
Market Dynamics
The large-scale sale of Bitcoin highlights the potential impact of government actions on the cryptocurrency market. Ryan Lee, chief analyst at Bitget Research, commented on the market's current state, saying:
"A recent dip and concerns over potential global interest rate hikes have created short-term bearish sentiment. However, institutional buying, particularly from firms like World Liberty Finance, may stabilize prices."
The market is also closely watching developments in U.S. monetary policy. According to CME Group’s FedWatch tool, markets anticipate a potential U.S. interest rate cut in mid-2025, which could influence Bitcoin prices further.
Background: The PlusToken Scandal
The PlusToken Ponzi scheme, which operated primarily in China, defrauded investors of billions of dollars in cryptocurrency. Chinese authorities seized over $4.2 billion worth of crypto, including 194,000 BTC, in 2019. The case has led to the arrest of at least 109 individuals linked to the scheme.
The sale of these assets by the Chinese government marks a significant chapter in the ongoing narrative of regulatory responses to cryptocurrency-related crimes.
For more updates on Bitcoin and global crypto markets, stay tuned to Cointelegraph.
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