Bitcoin News: China BTC Holdings Nearly Double That Of US

Recent Bitcoin news data reveals an imbalance in national Bitcoin holdings. Reportedly, China possesses nearly double the Bitcoin reserves of the United States.

According to figures from Jan3, China holds approximately 194,000 BTC. Whereas, the United States maintains just 112,189 BTC worth about $10 billion.

This substantial disparity exists despite China’s public stance against cryptocurrencies, having officially banned trading and mining within its borders in 2021.

The U.S. has moved toward embracing digital assets with its recently announced Strategic Crypto Reserve.

Bitcoin News: China’s Substantial Bitcoin Reserves Defy its Public Crypto Stance

The scale of China’s Bitcoin holdings presents a contradiction to its public policy positions.

While Chinese authorities have implemented some of the world’s most restrictive cryptocurrency regulations, including banning exchanges, mining, and trading, the nation has quietly amassed 194,000 BTC.

Much of this Bitcoin appears to have originated from the 2020 seizure of approximately 195,000 BTC from the PlusToken Ponzi scheme.

Rather than liquidating these assets on the open market, Chinese authorities appear to have transferred them to the national treasury.

This approach reveals a two-track strategy: publicly discouraging domestic crypto activity while simultaneously securing a national position in the asset class.

By pushing retail investors and miners out of the market while maintaining seized Bitcoin, Chinese authorities have concentrated digital asset power in government hands.

The United States, by contrast, holds 112,189 BTC valued at approximately $10 billion.

While substantial, this puts America at a $7 billion Bitcoin deficit compared to China.

Unlike China’s holdings, which appear to be centrally controlled, U.S. Bitcoin is likely distributed across various government agencies that have seized assets from criminal investigations, creating potential coordination challenges for developing a unified national strategy.

Other nations maintain notably smaller positions, with the United Kingdom holding 61,000 BTC ($5.3 billion), Ukraine possessing 46,351 BTC ($4.08 billion), and Bhutan maintaining 13,029 BTC ($1.14 billion).

El Salvador, despite being the first country to adopt Bitcoin as legal tender, holds just 6,089 BTC worth $537 million.

Strategic Implications Extend Beyond Simple Financial Value

China’s Bitcoin advantage carries implications that reach far beyond the immediate market value of its holdings.

As nations increasingly view Bitcoin as a strategic asset with properties similar to gold, this disparity creates several potential leverage points in international relations.

First, China’s large reserves give it substantial market influence. With holdings representing approximately 1% of all Bitcoin that will ever exist, any decision to hold, sell, or increase its position could move markets.

Second, these holdings provide China with a potential hedge against Western-dominated financial systems.

As discussions around SWIFT alternatives and de-dollarization continue, Bitcoin offers a settlement layer outside traditional banking networks.

Third, the holdings create bargaining chips in trade and technology negotiations.

As digital assets gain legitimacy through initiatives like the U.S. Strategic Crypto Reserve, China’s existing Bitcoin position may move into advantages when negotiating international standards.

Race to Accumulate BTC Could Intensify

The revelation of China’s Bitcoin holdings, combined with the U.S. Strategic Crypto Reserve announcement, may accelerate BTC acquisition.

As observed in recent bitcoin news, more countries disclose or begin building positions, the incentive for others to participate increases.

Nations currently holding minimal or zero Bitcoin reserves face increasingly difficult decisions.

Every major purchase now comes at higher prices, creating first-mover advantages for countries that have already established positions.

The data shows this gap clearly – China and the United States together hold over 300,000 BTC, while most nations hold either nominal amounts or none at all.

Countries with strained relationships with the United States might view Bitcoin accumulation as a strategic priority to reduce dependence on dollar-based systems.

Nations with large foreign exchange reserves currently held in U.S. Treasuries or other Western assets might consider diversifying a portion into Bitcoin as a hedge against potential sanctions or monetary policy decisions.

The map of national Bitcoin holdings reveals interesting regional patterns. Eastern European nations like Ukraine show surprisingly large positions (46,351 BTC), while Western European countries beyond the UK maintain smaller reserves.