CryptoQuant CEO Ignited Debate Over China’s Rumored 194K BTC Sales

Key Insights:

• CryptoQuant CEO Ki Young Ju claims Chinese authorities may have liquidated BTC linked to the PlusToken scam.
• On-chain data suggested confiscated assets were mixed and sent to exchanges for sale.
• Market participants fear confirmed sales could trigger a selling spree, impacting Bitcoin‘s price stability.

Ki Young Ju, CryptoQuant CEO, recently revealed that Chinese authorities have liquidated a significant amount of Bitcoin. These coins were linked to the PlusToken scam.

Ju made an X post on January 23rd. He shared on-chain data indicating that the confiscated assets were mixed and distributed to various crypto exchanges. This includes Huobi. He provided a detailed analysis showing that most of the funds were initially moved in batches before being sent for sale.

These comments have reignited discussions about the fate of the substantial Bitcoin reserve built by Chinese authorities in 2019. While the government publicly stated that these digital assets were “transferred to the national treasury,” it has never clarified whether they were kept or sold.

Per CryptoQuant CEO Ki Young Ju, the evidence points to a large-scale offloading that may have occurred through local exchanges. This revelation has left the community on edge.

The market is arguing whether this Bitcoin news is a rumor or a truth. It could impact the increased selling pressure on the Bitcoin price. As uncertainty looms, traders are closely monitoring the situation for further developments.

On-Chain data Suggests Bitcoin Sale, But Did China Liquidate?

In 2019, the Bitcoin reserves taken from China’s confiscation of the PlusToken scheme were worth around $4 Billion. However, its worth has changed a lot.

It has risen majorly following several factors. This has boosted it to around $19.8 Billion based on price when writing.

CryptoQuant CEO Ki Young Ju noted that PlusToken’s Bitcoin holdings fluctuated quickly after the confiscation. He further suggested that the funds were sold through a network of crypto mixers.

These mixers obscure the origins of transactions, making it difficult to trace the movement of the funds. In a post on X, Ju stated, “On-chain data shows the CCP sold everything using mixers to distribute funds across exchanges in 2019.”

He argued that using mixers would have been futile if the government intended to hold onto Bitcoin. It supports the theory of liquidation.

CryptoQuant CEO expressed his belief on Twitter that China may have already offloaded the 194,000 Bitcoin. His theory is grounded in historical trends and blockchain activity.

However, there has been no official confirmation from Chinese authorities regarding the sale. This Bitcoin news has divided the crypto community, with some skeptics questioning his claims.

Bitcoin reserves associated with the PlusToken fraud were significantly reduced between August and December 2019. Data from Valkyrie Research indicated the same. By the end of that year, the reserve, which once held 171,000 BTC, had dwindled to below 50,000 BTC.

Although the Chinese government has never formally acknowledged these sales, the transactions coincided with market activities during that year. However, the asset rebounded impressively, eventually reaching $100,000 in 2024.

Potential Market Impact of Seized Bitcoin Reserve Sale

If the sale of a significant portion of the seized Bitcoin reserve is confirmed, market participants may react with fear. This will lead to a potential selling spree driven by concerns over lost gains and trust issues.

Such a scenario could undermine the ongoing efforts to increase the Bitcoin price. It could break through that threshold if the price struggles to maintain its support at the $100K level.

This eroded optimism for reaching even larger targets. In this case, even whales might be compelled to sell.

As a result, many in the community hope this dire fear does not materialize. At the time of writing, Bitcoin price is trading above the $100K mark, specifically at $104,676.

The token remained above major EMA bands, indicating some level of stability. However, the uncertainty surrounding potential sales continues to loom over the market.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.