China Reacts to Trump's Electronic Currency Reserve - Is the Bitcoin Accumulation Process Underway?

China is believed to be expanding its efforts to establish its strategic Bitcoin reserve fund in response to recent announcements by US President Donald Trump. This move comes after Trump revealed the US plans to create a cryptocurrency reserve fund including major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). According to David Bailey, CEO of Bitcoin Magazine, Chinese officials have conducted "closed-door meetings" to develop their strategy, potentially indicating a new phase of Bitcoin accumulation in the country.

David Bailey, a key figure in the cryptocurrency market, has shared information with his followers on X (formerly Twitter). He declared that since the 2024 US election, Chinese officials have privately discussed establishing a Bitcoin reserve fund, with efforts intensifying since Trump's announcement. Bailey, who participated in Trump's campaign, added that China is currently "working double time" on its strategic reserves, driven by developments in the United States. Although not disclosing the exact source of information, he emphasized his connections in the cryptocurrency world, which, according to him, have provided detailed insights into China's new focus on Bitcoin. Trump's cryptocurrency reserve plan has caused a global reaction Recent statements by Trump on the US cryptocurrency reserves, including specific digital assets such as XRP and SOL, have attracted widespread attention. This statement was made in response to increasing calls for the US to create a strategic reserve combining digital assets, which could change the context of the cryptocurrency market. Regulations on Bitcoin are very complex because the Chinese government and authorities have seized and managed Bitcoin. Although this country is a world leader in Bitcoin mining, this activity was banned in 2021 to support the central bank's digital currency. However, news about China holding a large amount of Bitcoin has emerged this year, related to 195,000 BTC associated with the Ponzi Plustoken model, also known as the pyramid scheme model. The notion that China could build its own Bitcoin reserve warehouse is supported by the assumption that the majority of Bitcoins seized over the years are still in the hands of the Chinese people. However, the exact nature of these holdings remains unclear, with many questioning whether the Chinese government still holds these assets or has liquidated them. Bailey's previous statements indicate a shift in President Xi Jinping's stance on Bitcoin in recent years, possibly influenced by U.S. leadership. Market reactions and developments are unfolding The impact of Trump's statement and the potential ripple effects of China's actions have been felt throughout the cryptocurrency market. Bitcoin prices surged to key support levels of $89,000 and $91,000, with renewed interest in higher price targets. However, analysts still have some concerns, arguing that although customer enthusiasm is growing, the actual market remains unclear. Speaking about the current market dynamics, Valentin Fournier, an analyst at BRN, said the lack of concrete actions could lead to a correction timing that would replace the initial excitement.