- China accelerates efforts to build its own Bitcoin reserve, spurred by Trump’s U.S. crypto reserve announcement.
- Trump’s crypto reserve plan boosts market optimism, but analysts caution on the lack of concrete actions and potential market correction.
China is reportedly expanding efforts to establish its strategic Bitcoin reserve in response to the recent announcement by U.S. President Donald Trump. This move comes after Trump revealed plans for the U.S. to create a crypto reserve that would include major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
According to David Bailey, CEO of Bitcoin Magazine, officials in China have been conducting “closed-door meetings” to formulate their strategy, potentially indicating a new phase of the country’s Bitcoin accumulation.
China is now working double time to stand up their own Strategic Bitcoin Reserve.
They’ve been holding closed door meetings on the topic since the election.
— David Bailey🇵🇷 $0.85mm/btc is the floor (@DavidFBailey) March 2, 2025
David Bailey, a key figure in the crypto market, shared the information with his followers on X (formerly Twitter). He claims that since the 2024 U.S. election, Chinese officials have privately discussed the formation of a Bitcoin reserve, with efforts gaining momentum since Trump’s announcement.
Bailey, who has been involved with Trump’s campaign, added that China is now “working double time” on its strategic reserve, spurred by developments in the U.S. While he did not disclose the exact sources of his information, he emphasized the reach of his connections in the crypto world, which, according to him, have provided insights into China’s new focus on Bitcoin.
Trump’s Crypto Reserve Plans Spark Global Reactions
Trump’s recent statements on the U.S. crypto reserve, including specific digital assets like XRP and SOL, have drawn widespread attention. This declaration came as a response to growing calls for the U.S. to create a strategic reserve incorporating digital assets, which could alter the landscape of crypto markets.
The regulation of Bitcoins has been complex, as the Chinese government and authorities have been seizing and regulating Bitcoins. While the country was a world leader in Bitcoin mining, the activity was banned in 2021 in an attempt to support the central bank’s digital currency.
Even so, news about China again having large amounts of Bitcoin came out this year, regarding 195,000 BTC regarding the Plustoken Ponzi or pyramid scheme.
The concept that China could be building its own Bitcoin reserve is supported by the assumption that much of the Bitcoin confiscated over the years remains in Chinese hands.
However, the exact nature of these holdings remains unclear, with many questioning whether the Chinese government still holds onto these assets or has liquidated them. Bailey’s previous remarks suggest that President Xi Jinping’s stance on Bitcoin has shifted in recent years, possibly influenced by the leadership in the U.S.
Market Reactions and Ongoing Developments
The impact of Trump’s announcement and the potential ripple effect from China’s actions have been felt across the crypto market. Bitcoin’s price surged to key support levels of $89,000 and $91,000, with renewed interest in higher price targets.
However, analysts still have some concerns, saying that although customer enthusiasm is growing, the actual market is still unclear. Speaking of the current market drivers, Valentin Fournier, an analyst at BRN, said that the absence of concrete actions may lead to the time when correction will replace initial euphoria.