Market Analyst Warns of Potential Bitcoin Plunge to $40K Amid China’s Large-Scale BTC Sell-Off
A prominent cryptocurrency strategist has issued a bearish forecast for Bitcoin, predicting a potential downturn to the $40,000 price level. This warning comes as reports indicate significant BTC liquidation activity originating from Chinese institutional holders. The analyst suggests that this substantial sell pressure from one of Bitcoin’s historically largest markets could trigger a cascading effect across global exchanges. Technical indicators currently show weakening support levels, with the $40K mark representing a critical psychological and technical threshold. Market participants are advised to monitor order book depth and institutional flow patterns closely during this period of heightened volatility.
Source: AP Photo/Mark Schiefelbein
Bitcoin Crash Incoming? Why Experts Say China Could Drive Price to $40,000
The last several weeks have seen tensions rise between the US and China. Although US President Donald Trump has reiterated his confidence that the two sides will get a deal done, experts aren’t so hopeful. Until they do reach common ground, cryptocurrencies and the US stock market could suffer.
Indeed, there are rumors that the leading cryptocurrency could be a specific target within the growing tariff war taking place between both sides. Specifically, one cryptocurrency expert took to X (formerly Twitter) to theorize that Bitcoin could be poised to crash to $40,000 as China dumps its BTC.
According to the analysts, $400 million has already been liquidated from the country. However, they note that this is “only the beginning.” The move would have massive implications for the digital asset and the market. It was late last year that the asset surged to a six-figure price. Moreover, analysts project it to reach heights of $500,000.
The most concerning aspect of the sale is how much BTC China currently has. According to Binance, they stand as the second largest holder of Bitcoin, only to the United States. The US has sought to implement Bitcoin into its economy in a big way. Therefore, a move like this would greatly threaten the economy amid an ongoing trade war.
