Bitcoin in danger? Expert warns of Chinese alleged scheme to collapse BTC at $ 40,000 – Tradingview News

As Bitcoin (BTC), it is trying to stabilize above $ 80,000 support, a new warning from the Leviathan’s market analyst, raised concerns about the alleged China strategy that could significantly affect the leading cryptocurstity.

Chinese ‘Secret’ Bitcoin Strategy

In the recent post in KS (previously twitter), Levijathan claimed that China plans to sell his bitcoin farms, potentially launches the price of up to $ 40,000. According to an analyst, this move is just the beginning of a broader scheme.

Despite the public position of the Chinese government against trade in cryptocurlence, local authorities have found a solution, he states. The expert claims that they quietly cashed on the seizure of Bitcoin, which led to the “underground fiscal strategy” that operates in “legal ambiguity”.

The Chinese authorities are currently being reported to hold approximately 194,000 BTC, making them the second most Government owner of Bitcoin, right behind the United States.

Leviathan emphasized that although the Chinese government publicly condemns cryptocurrency, at the same time it benefits financially from its underground sales.

Local governments allegedly improvise their strategies, and some engaged private technical companies for liquidate confiscated Bitcoin on the stock market. Others reportedly maintain more “Clantestin access”.

The expert provides an example of a relatively unknown company in the shench, Jiafenkiag, who allegedly facilitated with $ 600 million in the name of various city governments, converting revenues in Yuan and transferred funds back to local financial finance departments.

Hong Kong appears as a potential haven for seized BTC in China

China is 2023. was a witness of record surge in cryptological crimes, with over 59 billion dollars related to illegal activities and more than 3,000 cases of money laundering processed.

In the midst of this background, local governments are increasingly relying on revenues realized by fines and confiscation – whose significant part comes from liquidated cryptocurries.

However, the need for funds is in the chance with the public anti-cryptian attitude of the Government, forcing officials to extend coins abroad through intermediaries, hoping for minimum interference of Beijing.

Among the judges, lawyers and police were discussions about the need for consistent national policies in terms of confiscated cryptocovals. Some suggested that the Central Bank took control of these means, while others proposed the establishment of a fund for sovereign crypto.

Leviathan pointed to Hong Kong, who, with his favorable legal framework for cryptocurries, appeared as a potential destination for the Chinese city bay.

This situation is a unique challenge for China, because the contradiction between its public waiver of the cryptocunites and its private profit is becoming increasingly visible.

As they are now moving towards the legitimizing cryptocurries at the federal level, including strategic reserves under President Donald Trump and his constant support for CRIPTO, China may accept to respond, forced.

Finally, Leviathan said that the fate of Chinese funds of 194,000 Bitcoin will not only form national policies, but could also send currencies throughout the global financial landscape.

At the time of writing, BTC trades $ 84,800, register 5% increase in the weekly time frame.

Featured image from Dall, Graph with TradingView.com