- The renewing U.S.–China conflict adds short-term volatility but highlights Bitcoin’s growing role as a geopolitical hedge.
- As for Bitcoin, the shrinking exchange supply and record ETF inflows point toward a long-term bullish outlook for BTC, even amid regulatory and diplomatic turbulence.
At the peak of escalating U.S.–China tensions, Beijing’s cybersecurity watchdog has accused the United States of masterminding one of the largest crypto thefts in history—allegedly siphoning $13 billion in Bitcoin through a covert, state-level hack.
As detailed in a technical report from China’s National Computer Virus Emergency Response Center (CVERC), the claim adds another layer of geopolitical intrigue, with both powers trading accusations in what seems like a case of “thieves falling out.”
For more context, Crypto News Flash (CNF) recently reported that easing U.S.–China trade relations had supported bullish momentum in crypto assets tied to global commerce, such as XRP, LINK, VET, and BTC. However, this new accusation marks a sharp reversal, reigniting tensions.
According to the U.S. side, the Department of Justice emphasized that:
Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud.
Meanwhile, the CVERC report from Beijing counters with its own claim:
The U.S. government may have already used hacking techniques as early as 2020 to steal the 127,000 Bitcoins held by Chen Zhi.
Subsequently to that, the investigators on the two both sides point to suspicious details such as identical transaction fees, automated high-end scripts, and a four-year dormancy period when which the stolen coins remained as untouched.
Bitcoin Outlook: A Bullish Supply Shortage Amid Geopolitical Noise
The current situation underscore the fragility of global mining infrastructure and the razor-thin line between enforcement and aggression on the digital era. Rising U.S.–China friction could triggering with new regulatory crackdowns, possibly dampening investor confidence—similar to China’s 2021 mining ban that slashed hash rates by 50%.
Yet, Bitcoin continues to demonstrate resilience, buoyed by $2.5 billion in weekly ETF inflows and accelerating institutional adoption. Although, short-term volatility is likely—a 5–10% dip from panic selling—but the fundamentals remain strong, with analysts eyeing $110,000 by year-end as long-term holders double down on Bitcoin’s independence from political disputes.
According to TradingView, on-chain data shows BTC reserves on exchanges have fallen to multi-year lows, around 2.8–2.9 million BTC, signaling a tighter available on supply. Meanwhile, institutional investors are absorbing some much of the newly issued Bitcoin. A Finance report reveals that corporations, sovereign funds, and ETFs have collectively accumulated over six times the new BTC mined through October 2025.
As of now, Bitcoin (BTC) trades at approximately $103,277.44, marking a 1.14% gain over the past day despite a 2.97% decline over the past week, according to CoinMarketCap’s live data. See BTC price chart below.