China’s Hidden Bitcoin Sell-Off Could Impact Crypto Markets – BTC Eyes $88K Amid Regulatory Shifts

Bitcoin is under pressure again, and China might be behind it this time. A Reuters report reveals that local Chinese governments could quietly sell off seized Bitcoin through private channels to stabilize their finances. Experts estimate that over 15,000 BTC may be in play. This quiet liquidation raises questions about crypto regulation in China, especially as these moves contradict Beijing’s public crypto ban. Meanwhile, Trump’s renewed support for a U.S. Bitcoin reserve adds political spice to the global crypto narrative. With these opposing strategies unfolding, Bitcoin price volatility could spike in the coming weeks.

China’s Bitcoin Sell-Off Plans: Regulatory Concerns and Global Impact

According to a recent Reuters report, Chinese authorities may discreetly sell large amounts of confiscated Bitcoin through private companies. Despite its official ban on crypto trading, China’s local governments are turning to this “grey zone” strategy to raise funds amid economic strain. Shenzhen-based Jiafenxiang reportedly offloaded over $3 billion in cryptocurrencies for various municipalities, converting proceeds into yuan to support local budgets.

Legal scholars and enforcement officials within China are increasingly concerned about the lack of regulation in this process. Professor Chen Shi has called the current system a “makeshift solution” that doesn’t fully align with the existing crypto ban. Calls for centralized guidelines and a legal framework are growing louder, especially with a tenfold surge in crypto-related crimes noted in 2023.

Interestingly, Donald Trump’s push for a strategic Bitcoin reserve during his 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 argue for centralized disposal through Hong Kong.

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

Bitcoin Price Actions on April 17

The trading day of April 16th for BTC/USDT started with bullish momentum, as shown on the 5-minute chart. 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. Buyers pushed the price upward, and by 15:25 UTC, RSI signaled an overbought condition. 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.

 BTC/USDT Chart, analyzed by ShwetaCW, published on TradingView, April 17, 2025

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 prediction, 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.

Bitcoin Price Outlook

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.