China's Rumored Bitcoin Reserve

Reports suggest China is accelerating efforts to build a strategic Bitcoin reserve, fueled by recent changes in US cryptocurrency regulations. This follows a previously reported sale of 194,000 BTC, allegedly seized assets from the 2019 PlusToken scam.

Key Developments

• Increased Bitcoin Accumulation: Rumors indicate China is actively pursuing the creation of a Bitcoin reserve.
• Reported Bitcoin Sale: China reportedly sold 194,000 BTC previously seized from the PlusToken scam.
• Geopolitical Context: This potential move aligns with China's broader de-dollarization strategy, including increased gold holdings and involvement in the BRICS economic bloc.

China's Strategic Shift

David Bailey, CEO of BTC Inc., claims China is intensifying its efforts to establish a Bitcoin reserve, citing closed-door meetings following recent elections. While official confirmation is absent, Bailey's information comes from sources within the Chinese Bitcoin community. This reserve could provide China with a decentralized store of value, potentially mitigating reliance on the US dollar and reducing vulnerability to Western sanctions.

This alleged strategy contrasts with previous reports of Bitcoin sales. Crypto Quant CEO Ki Young Ju reported that China sold 194,000 BTC, originating from the PlusToken scam. While the Chinese government claimed these funds were moved to the national treasury, there's no official confirmation of the sale. The contrast between these two events highlights the uncertainty surrounding China's crypto strategy.

US Crypto Landscape

The US currently holds an estimated 198,000 BTC (approximately $18 billion at current market prices), according to Arkham Intelligence. Simultaneously, US states are promoting Bitcoin adoption, and there are discussions within the US government about a national digital asset stockpile that could include Bitcoin and other cryptocurrencies.

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