China holds approximately 194,000 Bitcoin, primarily acquired through fraud-related asset seizures from 2018 to 2020, according to TheCCPress. Despite a domestic ban on cryptocurrency trading, China remains the second-largest governmental holder of Bitcoin, following the United States. The substantial holdings have attracted attention from financial experts and the U.S. Treasury due to potential market risks if these assets are liquidated. However, there is currently no on-chain evidence indicating any imminent sales.