Bitcoin [BTC]’s dominance in 2025 has surged

Reports suggest that Washington may consider adding Bitcoin to its strategic reserves, though Bloomberg estimates only a 30% likelihood of such a move this year.

President Donald Trump’s election victory and growing speculation about U.S. government adoption saw Bitcoin’s (BTC) dominance in 2025 surge further.

Reports emerged suggesting that Washington may consider adding Bitcoin to its strategic reserves, though Bloomberg estimated only a 30% likelihood of such a move this year.

However, the idea of the U.S. buying Bitcoin sparked lively discussion, with Senator Cynthia Lummis claiming that it could provoke geopolitical competition, especially with China.

But, longtime Bitcoin critic Peter Schiff’s response to the X (formerly Twitter) post had the crypto community flummoxed.

To this, Schiff responded, saying, “Actually, it’s likely the Chinese government already sold that Bitcoin in January, above $100k. What makes you think they still own it.”

For those unaware, China’s Bitcoin holdings have come under scrutiny following reports that the government may have offloaded nearly $20 billion worth of BTC.

According to CryptoQuant CEO Ki Young Ju, these assets were originally seized from the 2019 PlusToken Ponzi scheme, which defrauded investors of billions.

Ju suggests that approximately 194,000 BTC was gradually liquidated through exchanges like Huobi.

While Chinese authorities previously claimed the confiscated crypto was transferred to the national treasury, they never clarified whether it was sold or retained, fueling speculation about the scale of the liquidation and its impact on the market.

Referring to this, Schiff further added, “In Jan. @CynthiaMLummis said that she thought China would get into the equivalent of an arms race with the U.S. over which nation could buy the premier cryptocurrency. I doubt it, especially if China was smart enough to have sold all of its Bitcoin during that month.”

Global powers and their stance on Bitcoin

Despite Bitcoin’s growing prominence in global finance, major economies remain hesitant to incorporate it into their reserves.

Bitcoin Treasuries data shows that China holds the second-largest government Bitcoin stash, trailing only the U.S.

However, Japan and South Korea remain skeptical, showing little interest in diversifying their reserves with Bitcoin.

Meanwhile, Bitcoin struggles to stay above $90K, recently dropping 0.45% and sliding to $84,333.20 in the past 24 hours, according to CoinMarketCap.

This decline puts short-term Bitcoin holders in a predicament with mounting unrealized losses, marking a pivotal moment in the market cycle.

Historical trends indicate that these phases act as temporary cooldowns rather than long-term reversals.

While the pressure builds, the correction has yet to reach an extreme level.

Therefore, if Bitcoin manages to hold key psychological support and macroeconomic conditions remain favorable, this downturn could serve as a reset setting the stage for the next bull run.