Mar 23, 2025

China May Have Cashed Out Its Bitcoin Holdings Above $100K, Schiff Suggests

Peter Schiff, a vocal critic of Bitcoin and prominent gold advocate, claimed this week that the Chinese government likely sold its Bitcoin holdings in January when prices were above $100,000.

The remark came in response to renewed speculation on social media about a potential geopolitical “arms race” over Bitcoin between the United States and China.

“Actually, it’s likely the Chinese government already sold that Bitcoin in January, above $100k,” Schiff posted on X, responding to user @Vivek4real_, who cited Senator Cynthia Lummis’s assertion that the U.S. acquiring Bitcoin could trigger a digital asset rivalry with China.

“What makes you think they still own it,”

– Schiff added.

Schiff’s comment directly contradicts a widely circulated claim that China holds roughly 190,000 BTC, slightly less than the United States’ estimated 198,109 BTC. The holdings attributed to China reportedly stem from Bitcoin seized during the 2019 PlusToken scam.

Peter Schiff suggesting China probably sold its bitcoin holdings. Source: Schiff on X

Skepticism and Claims of Market Manipulation

Schiff has maintained a longstanding skepticism of Bitcoin. He has frequently dismissed the cryptocurrency as speculative, calling it “digital fool’s gold” and asserting that gold remains the superior hedge. “Gold is the apex predator that will eat Bitcoin,” Schiff posted earlier this month, noting that Bitcoin has declined 24% against gold since its 2021 peak.

Schiff has also argued that the crypto market is being artificially sustained by political and corporate influence. “If the U.S. government is not going to buy any Bitcoin, then why is anybody else?” he said on his podcast.

He attributed current Bitcoin-related policy momentum to lobbying from the cryptocurrency industry, suggesting that it misleads investors and encourages risky speculation.

Recent actions by the U.S. government appear to have intensified those concerns. The creation of a Strategic Bitcoin Reserve — holding only forfeited assets for now — was hailed as a win by crypto proponents.

Schiff called the move a “waste of resources,” predicting that the fallout from a potential crash would disproportionately affect U.S. investors. “We’ve got the lion’s share of this bubble,” Schiff said. “So when the Bitcoin and crypto bubble pops, where it does the most harm is in the U.S.”

Timing of Chinese Bitcoin Sales

Schiff’s claim that China has exited its Bitcoin position aligns with earlier reports from January. At that time, Ki Young Ju, CEO of CryptoQuant, stated that 194,000 BTC tied to China had been mixed and transferred to exchanges.

Ju concluded it was unlikely the Chinese government still owned the coins. Schiff indirectly referenced this context, arguing that claims of a Bitcoin standoff with China are part of a coordinated effort to “pump the price.”

“China is laughing at us for buying Bitcoin,” Schiff said. “We’re buying digital fool’s gold while they buy the real thing.”

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