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In recent weeks, the governments of Germany and the United States have created strong selling pressure on the price of Bitcoin (BTC). However, this pressure could increase even more with the entry of another major holder: China.

According to local newspaper Sina Finance, the Chinese government revealed amounts seized in 2023 from the PlusToken pyramid scheme. The amounts were 190,000 BTC, 830,000 Ethereum (ETH) and 27.24 million EOS.

For now, these assets are being held by the Chinese government. But if the authorities decide to sell these assets, the price could face even greater corrections.

PlusToken Case

PlusToken was a Ponzi scheme led by three individuals Chen Bo, Ding Zanqing, and Peng Yixuan. Considered the largest scam in history, this scheme siphoned off over 300,000 BTC from thousands of victims.

Specifically, PlusToken raised 310,000 Bitcoins, 9.17 million Ethereum, and over 51 million EOS, offering returns to those who deposited cryptocurrencies. The scheme began to collapse in 2020 and culminated in the arrest of the scheme’s operators in July of that year.

Along with the arrest, the Chinese government seized several BTC, ETH, and EOS. These cryptocurrencies have been handed over to the Chinese treasury, but no one yet knows what will happen to them.

In recent weeks, the German government has sold more than half of the 50,000 Bitcoins seized from the operators of Movie2k.to, a notorious movie piracy website. The sales took place over the past 21 days and caused BTC to plunge sharply.

Will the Chinese government sell Bitcoins?

One of the recent transfers took place on Monday, when the German government transferred nearly 5,000 BTC and sold them on various platforms.

With the revelation that the Chinese government has an even larger Bitcoin reserve than Germany did, concerns about potential sales have resurfaced. If China sells just 20% of these BTC, it will already have a bigger impact than the German sales.

If that happens, the end of Bitcoin’s selling pressure may not be over, as some analysts have explained. Many traders are now projecting that BTC could fall below $50,000.

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Source: https://www.criptofacil.com/depois-da-alemanha-china-pode-causar-mais-quedas-no-bitcoin/



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