China prepares for an all-out trade war and sells all its Bitcoins

It was foretold long ago, but due to the rising trade war between China and the United States, it is now a fact: the government in Beijing has ordered its local municipalities to sell all their cryptocurrencies in the short term in order to fill the local treasuries. This is causing a lot of Bitcoins to return to the market and the price could be pressured because of it. However, due to the falling dollar (which in turn drives up the price of Bitcoin), we are not seeing a strong fall.

Two forces that are working against each other for the king of crypto.

Whale

It was Reuters that confirmed the remarkable news. China has ordered its local governments to sell all their Bitcoins and other cryptocurrencies in order to fill local coffers. It is clear that Beijing expects the trade war to last for a while. According to the global data on Bitcoin reserve by country, China was until recently the second largest Bitcoin Whale among countries (after the United States), with a stash of around 194,000 Bitcoins.

They had taken these when the Chinese authorities had shut down the operation behind PlusToken. That was a Ponzi scheme that had stolen billions of dollars from ordinary Chinese people. The proceeds of that raid were those 194,000 Bitcoins. The Chinese government kept saying that these Bitcoins were transferred to the state, but gave no further details.

By now, it is clear that China will no longer rank as the second largest Bitcoin whale among countries.