Bitcoin Price Holds Above $85K as China’s Crypto Liquidation Strategy Raises Questions: Will a Policy Shift Follow?

China has seized one of the most extensive government-controlled Bitcoin holdings in the world, but what comes next is far from clear. With the Bitcoin price on the rise, local authorities are selling seized crypto assets to raise public funds, yet the country still enforces a full ban on trading. With conflicting strategies and no clear regulatory framework, a debate is growing inside China’s legal and financial system. The question now is whether this crypto cache will be liquidated or transformed into a long-term Bitcoin reserve.

Bitcoin Seizures Raise Questions About China’s Crypto Strategy

As China’s government ramps up its seizures of crypto assets, local authorities are stuck in a contradiction. On one hand, seized Bitcoin is being sold to support public finances. On the other hand, crypto trading remains banned nationwide. This legal disconnect creates confusion and growing concern about how the assets are handled. Reports suggest inconsistent policies, potential corruption risks, and rising pressure on lawmakers to introduce clear rules. There’s also growing momentum to let China’s central bank take control of the seized crypto, possibly by establishing a Bitcoin reserve or selling it abroad. 

Meanwhile, enforcement actions tied to crypto-related crimes are on the rise. These cases are becoming a major source of both revenue and political tension, especially in cities with strong underground crypto economies. Despite the ban, a significant share of China’s population still holds crypto, and Bitcoin ownership is widespread. The pressure on legislators to define the laws and decide is only rising as digital assets become more widespread. Let’s see how this growth affects the Bitcoin price in light of the Bitcoin price forecast.

Bitcoin Price Prediction for April 18, 2025

Bitcoin’s price consolidates between a clear support zone of around $83,000 and a resistance zone of around $86,000. It is currently hovering near the upper range, suggesting a potential breakout attempt. The horizontal price action and tight candles reflect indecision, typical before a strong directional move. The price structure shows higher lows forming since the sharp dip on April 7, indicating a gradual bullish buildup. However, repeated rejections near resistance highlight that sellers remain active. 

Chart 1: Analysed by vallijat007, published on TradingView, April 18, 2025

A clean breakout above $86,000 could trigger bullish momentum and open the door toward new highs. On the downside, if the $83,000 support breaks, BTC might retest lower levels near $80,000 or even $78,000. The RSI at 54.49 suggests moderate bullish pressure, neither overbought nor oversold. MACD lines are flat, reinforcing the ongoing consolidation phase. In summary, BTC is at a critical juncture. Traders should watch for a breakout above resistance or a breakdown below support to confirm the next major trend direction.

China’s Bitcoin Dilemma Isn’t Just Legal, It’s Strategic

China’s massive Bitcoin seizure spotlights a deeper issue: the country’s stance on crypto remains deeply conflicted. On one side, it bans crypto trading; on the other, it profits from selling what it seizes. Without a unified policy, each new case adds to the confusion. As global adoption grows, pressure is mounting for China to clarify its position for legal consistency and strategic control. Whether the seized Bitcoin is sold, held, or repurposed could signal where China really stands on digital assets.

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