China's Bitcoin Sell-Off May Pressure Prices Amid Global Regulatory Divergence

Bitcoin is currently facing pressure, with China potentially playing a significant role. Reports indicate that local Chinese governments may be quietly selling off seized Bitcoin through private channels to bolster their finances. This covert liquidation raises questions about crypto regulation in China, particularly as it contradicts Beijing’s public stance on crypto. Meanwhile, former U.S. President Donald Trump’s renewed advocacy for a U.S. Bitcoin reserve adds a political dimension to the global crypto narrative. These opposing strategies could lead to increased Bitcoin price volatility in the coming weeks.

According to recent reports, Chinese authorities may be discreetly selling large amounts of confiscated Bitcoin through private companies. Despite the official ban on crypto trading, local governments in China are resorting to this “grey zone” strategy to raise funds amidst economic challenges. A Shenzhen-based company, Jiafenxiang, is reported to have offloaded over $3 billion in cryptocurrencies for various municipalities, converting the proceeds into yuan to support local budgets.

Legal scholars and enforcement officials within China are expressing growing concerns about the lack of regulation in this process. Professor Chen Shi has described the current system as a “makeshift solution” that does not fully align with the existing crypto ban. There are increasing calls for centralized guidelines and a legal framework, especially with a tenfold surge in crypto-related crimes noted in 2023.

Donald Trump’s proposal for a strategic Bitcoin reserve during his potential second presidency has sparked debate among Chinese experts. Some believe China should adopt a similar model, using seized assets to build national reserves rather than liquidating them hastily. Others advocate for centralized disposal through China Hong Kong.

With over 15,000 BTC potentially on the move, China’s actions could significantly impact the Bitcoin price, especially at a time when global regulations and political strategies are diverging.

On April 16th, the trading day for BTC/USDT began with bullish momentum. An oversold situation appeared on the RSI at 00:55 UTC, and the price found support at $83,113.67. Shortly after, the MACD line indicator showed a golden cross, initiating an upward trend. The bullish sentiment held strong for most of the day, with buyers pushing the price upward. By 15:25 UTC, RSI signaled an overbought condition, and BTC hit intraday resistance at $85,503.32. However, the rally lost steam soon after. A death cross on the MACD at 17:30 UTC confirmed a shift in momentum, triggering a sharp drop.

RSI again moved into oversold territory, showing signs of exhaustion among sellers. Interestingly, a fresh golden cross formed near the end of the session, just before midnight UTC, suggesting a recovery. The price entered April 17th with moderate bullish momentum, consolidating between key levels. According to Bitcoin price predictions, if the bullish momentum continues, it could break the resistance level of $85,503.32 and aim for $88,000. Alternatively, if the trend reverses, it could break the current support of $83,113.67 and aim for $80,000.

China’s potential Bitcoin sell-off and differing global crypto strategies highlight the challenges ahead for Bitcoin. With regulatory concerns rising, Bitcoin may face downward pressure. According to Bitcoin price predictions, if global market instability continues, BTC could test $80,000, further highlighting the impact of crypto regulation and political strategies like Donald Trump’s.