The world of cryptocurrency is once again going through turmoil. While global investors are excited about the stability and future of bitcoin, on the other hand a shocking report has come to the fore. Crypto analysts claim that the Chinese government is quietly selling bitcoin, and this move could cause a massive drop in the market. If this trend continues, the price of bitcoin could fall to $ 40,000.
Table of Contents
- What is the Whole Matter?
- Analysts Warn: Bitcoin May Fall to $40,000
- FTX-Linked Token Sale: Another Factor Contributing to Market Instability
- China’s Role in the Cryptocurrency Market
- Market Fear and Bitcoin Price Fluctuations
- What Should Investors Do?
- Conclusion
What is the whole matter?
Recently a crypto analyst warned that China is secretly selling bitcoin from its holdings. These sales are taking place in the form of digital assets recovered from large crypto exchanges like FTX. According to the analyst, this continuous selling by China is increasing the price pressure in the market, and it is pulling the prices down.
This report was published by Coinpedia, which emphasized that China is gradually selling bitcoin assets seized in several crypto crimes between 2019-2022 in the market.
Analysts warn: Bitcoin may fall to $ 40,000
Kio Young-ju, CEO of leading crypto analyst CryptoQuant, tweeted that the selling pressure in the market is increasing rapidly, especially in Asian trading hours. According to him, if this trend continues, the price of bitcoin could fall to $ 40,000 in the coming weeks.
Along with this warning, he also pointed out that thousands of bitcoins seized in China are still with the government, and if these are put into the market, it will have a direct impact on the prices.
FTX-linked token sale is also a reason
FTX, which was a major crypto exchange and declared bankruptcy in 2022, had digital assets worth hundreds of millions of dollars. Recently, news came that FTX’s assets are also being sold, so that the company’s debtors can be paid. This is also having a negative impact on the market.
Analysts say that when such a large amount of bitcoin and other crypto tokens come into the market, they distort the demand-supply situation. This spreads fear among investors and prices go down.
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China’s role: Once again in controversy
China is already known for its tough attitude towards cryptocurrencies. In 2021, it completely banned crypto mining and trading. Since then, the government has seized bitcoin and other digital tokens in several cases. Now if this news proves to be true that the Chinese government is selling these tokens secretly, it raises serious questions about transparency in the global market.
Atmosphere of fear in the market
Fluctuations in bitcoin prices are common, but when it is due to a potential sell-off by governments on a large scale, investors’ confidence is shaken. Currently, the price of bitcoin remains around $63,000, but due to increasing uneasiness in the market, it can fall to $40,000 at any time.
What should investors do?
In this situation, crypto investors are advised to:
- Do not make any hasty decisions
- Think of investing for the long term
- Diversify the portfolio (i.e. do not invest only in bitcoin)
At such times, keep an eye on the big movements happening on crypto exchanges
Experts also believe that this decline may be temporary, and as soon as the market stabilizes, prices may go up again.
Conclusion
The news of China’s secret bitcoin sale is creating a sensation in the market. If this trend continues, crypto investors may get a big shock in the near future. Bitcoin prices may fall to $40,000, which will increase panic selling further. Investors need to exercise patience and wisdom at this time, because the crypto market is as risky as it is profitable.
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