Information revealed by Cryptoquant CEO Ki Young Ju shows that a crypto-reverse country currently has enough reserves for Bitcoin (BTC) and thus the market crash.
China emerged as a sneaky whale that could crash the market
The largest country in Asia was at the forefront of countries rejecting cryptocurrencies. Even now, it has reserves that can completely destroy the market in a few seconds. According to a report published on November 13 by cryptocurrency researcher Paulo A. José, the Chinese government holds more Bitcoin (BTC) and Ethereum (ETH) than MicroStrategy or Elon Musk.
Ki Young Ju, founder and CEO of blockchain information analytics platform CyptoQuant, first shared this information on Nov. Ki Young Ju also published a table listing the publicly traded companies with the largest Bitcoin reserves.
China got most of this cryptocurrency reserve from a fraud investigation in 2019. According to the research:
Chinese authorities seized 194 thousand BTC, 833 thousand ETH and other cryptocurrencies from PlusToken scam in 2019. They transferred assets of 6 billion dollars to the national treasury.
China isn’t the only Bitcoin whale
In another comment, Young Ju stated that the Bulgarian government owns more than 200,000 Bitcoins. The Bulgarian government also took over these cryptocurrencies from a crypto bug ring in 2017.
Is Bitcoin in Danger?
According to José, who brought up the crypto reserves of the countries, if China starts selling the 194,000 BTC it has seized, the market has a chance to suffer significant losses. According to the researcher, China’s power is enough to bring the price of Bitcoin down to $ 5,000 in seven seconds. However, China has been implementing nationwide cryptocurrency bans since 2021. But the bans did not stop the country from adopting cryptocurrencies. China still remains in the middle of the top 10 in the use of cryptocurrencies.
Additionally, despite the bans, Chinese miners continue to grow, according to information from Birawr. Sources reveal that as of November 11, there are 65 Bitcoin node operators.
BTC price analysis
CryptoQuant analyst Achraf Elghemri shared that Bitcoin is showing a different move that could lead to a reversal of the trend at the expense of MVRV. In his analysis, he noted that the MVRV index showed a low cost ratio. There has been very little speculative bounce in recent days due to the severity of the decline. This points to a possible market floor. Therefore, according to the analyst, investors can expect a price increase.
On the on-chain side, unlike Glassnode, the number of addresses holding 0.01 or more Bitcoin reached 11032.070 ATH. This was a positive development as it reflected the faith of investors in Bitcoin amid the crisis. Koindeks.comAs you follow, BTC price is currently spending time in the $16,500 region.