China has long been known as one of the world’s largest holders of Bitcoin, ranking second only to the United States in terms of BTC holdings. According to data from Bitcoin Treasuries, China currently holds 194,000 BTC, trailing slightly behind the US with 207,189 BTC. However, recent claims made by renowned gold advocate and Bitcoin critic Peter Schiff have cast doubt on China’s status as a major Bitcoin player.
Schiff has boldly stated that China has already sold off its Bitcoin holdings, a claim that has sparked controversy within the crypto community. This assertion is supported by crypto analyst Ki Young Ju, who suggested that China liquidated all the BTC it seized from the PlusToken scam earlier this year. Despite data from Bitcoin Treasuries still listing China’s holdings at 194,000 BTC, Schiff and Young Ju maintain that these tokens were sold off in January.
The implications of China potentially selling its Bitcoin are significant, especially in the context of a supposed Bitcoin arms race between the US and China. US Senator Cynthia Lummis had previously warned of such a competition, but Schiff vehemently disagrees with this notion. He argues that China has no interest in accumulating Bitcoin and views gold as a more reliable store of value. Schiff also suggests that rumors of a US-China Bitcoin arms race are being spread by Bitcoin supporters to drive up prices.
In terms of Bitcoin market trends, analysts predict that 2025 could bring significant price gains, following the typical four-year cycle of bullish momentum. While Bitcoin saw a surge of 155.4% in 2023 and a growth of 121.1% in 2024, the market experienced a mixed start to 2025. January saw a 9.54% gain, followed by a sharp drop in February (-17.5%), but March showed signs of recovery with a 3.43% increase Month-To-Date (MTD).
On the political front, the return of pro-crypto leader Donald Trump to office following the 2024 US election has led to more favorable government policies toward crypto. The US has introduced several crypto-friendly initiatives, including the establishment of a strategic Bitcoin reserve. While the specifics of this reserve and its future actions remain unclear, the market has responded positively to the pro-crypto stance of the Trump administration.
In conclusion, the Bitcoin ecosystem thrives on uncertainty, with rumors, politics, and market cycles all playing a role in shaping its trajectory. As the debate over China’s Bitcoin holdings continues and the market undergoes its typical cycles, investors and enthusiasts alike are watching closely to see how events unfold in the ever-evolving world of cryptocurrency.