China is one of the world’s largest Bitcoin-holding governments, ranking second only to the United States. According to Bitcoin Treasuries, China holds 194,000 BTC, while the US leads with 207,189 BTC. But here’s where things get interesting—while these numbers suggest China is still a major Bitcoin player, some experts claim otherwise.
Renowned gold advocate and Bitcoin critic Peter Schiff insists that China has already sold off its BTC holdings. If true, this could change the entire narrative around a potential Bitcoin arms race between the US and China. So, did China really dump its Bitcoin? And if it did, why? Let’s dive in and uncover the truth.
Schiff argues that China offloaded its Bitcoin holdings in January, echoing similar claims made by crypto analyst Ki Young Ju. In January, Young Ju suggested that China had already sold off all the BTC it seized from the PlusToken scam.
While Bitcoin Treasuries data still lists China’s holdings at 194,000 BTC, Young Ju insists these tokens were liquidated earlier this year.
Schiff made his remarks in response to US Senator Cynthia Lummis, who warned that a Bitcoin arms race between the US and China could be on the horizon. However, Schiff disagrees, arguing that China has no intention of competing in Bitcoin accumulation. He also claims that Bitcoin supporters are spreading these rumors to push prices higher. According to Schiff, China sees gold as a more reliable store of value than Bitcoin.
Bitcoin’s price movements follow a four-year cycle, with the third year of each cycle typically seeing strong bullish momentum. Since the latest cycle began in 2023, analysts expect 2025 to bring significant price gains.
In 2023, Bitcoin surged by 155.4%, but in 2024, its annual growth slowed to 121.1%.
This year, Bitcoin recorded a 9.54% gain in January, followed by a sharp drop in February, with returns slipping to -17.5%. However, in March, the market showed signs of recovery, with a Month-To-Date (MTD) increase of +3.43%.
Since the 2024 US election, government policies toward crypto have taken a more favorable turn. On election day—November 5, 2024—Bitcoin was trading just above $67K. Since then, the market has grown by at least 28.43%.
With pro-crypto leader Donald Trump back in office, the US has introduced several crypto-friendly initiatives, including a strategic Bitcoin reserve. Currently, this reserve holds forfeited coins, but it’s still unclear when the government will start actively buying Bitcoin to expand its holdings.
Rumors, politics, and market cycles – Bitcoin thrives on uncertainty, and that’s exactly what keeps things interesting.
The United States holds the most Bitcoin among governments, with 212,000 BTC worth $7.37 billion, seized from criminal activities.
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