Expert Warns China’s Strategy Could Drive Bitcoin Price to $40,000

Bitcoin (BTC) is currently attempting to stabilize above the critical $80,000 support level. Market analyst Leviathan has issued a warning regarding China's potential strategy that could impact BTC's price significantly.

China’s Bitcoin Strategy

Leviathan claims China may sell its Bitcoin holdings, potentially lowering the price to $40,000.
The Chinese government publicly opposes cryptocurrency trading but allegedly profits from the sale of confiscated Bitcoin.
Chinese authorities reportedly hold around 194,000 BTC, making them the second-largest government holder after the United States.
Some local governments are collaborating with private firms to liquidate confiscated Bitcoin on offshore exchanges.
An example includes Jiafenxiang in Shenzhen, which facilitated over $400 million in crypto sales for city governments.

Hong Kong as a Potential Haven

In 2023, China experienced a surge in crypto-related crimes, totaling over $59 billion in illegal activities.
Local governments rely on revenue from fines and confiscations, including cryptocurrencies.
Discussions are ongoing about establishing a consistent national policy regarding seized cryptocurrencies.
Hong Kong could serve as a favorable destination for China’s Bitcoin due to its more permissive legal framework.
The contradiction between China’s public anti-crypto stance and its financial gain from cryptocurrencies is becoming increasingly evident.

As of now, BTC is trading at $84,800, reflecting a 5% increase over the week.