China has accused the US of stealing 127,000 Bitcoin (BTC) worth over $13 billion, sparking a major diplomatic storm and renewed volatility in the Bitcoin price prediction market. The controversy centers on the 2020 hack of the LuBian mining pool, which lost 127,426 BTC—then valued around $3.5 billion—from its hot wallet. Beijing’s cybersecurity agency, CVERC, has claimed the hack was not a cybercrime by outsiders but an alleged “state-level operation” conducted by US intelligence. Washington, however, insists the coins were lawfully seized from a fraud-linked network connected to Cambodia’s Huione Group.

The massive Bitcoin stash, now valued at $13.3 billion, was reportedly taken under a US Department of Justice order in late 2025, fueling one of the most serious crypto disputes between the two powers. Analysts say the timing could hit short-term sentiment, with fear and uncertainty driving profit-taking. Yet, the geopolitical clash could also highlight Bitcoin’s long-term status as a strategic digital asset.

Bitcoin (BTC) is trading near $104,374, slipping 1.8% in the last 24 hours. The world’s largest cryptocurrency hit an intraday high of $107,355 and a low of $104,251, showing mild volatility through the session. Its market cap now stands around $2.08 trillion, with strong trading volumes in the billions. Investors are closely watching the $104K support zone.

Market watchers note that roughly 0.65% of the total Bitcoin supply is tied up in this dispute, meaning reduced circulating liquidity could tighten supply and lift long-term valuations. Despite the tension, institutional demand remains strong, with top Bitcoin ETFs showing continued inflows. For investors, this tug-of-war between nations has turned Bitcoin into more than just a cryptocurrency—it’s now a geopolitical asset shaping the next wave of crypto price movements.

What’s behind China’s $13 billion Bitcoin hack accusation against the US?

A new crypto controversy is shaking markets. China has accused the United States of stealing 127,000 Bitcoin (BTC) — now worth over $13 billion — in what Beijing calls a “state-level cyber theft.” The alleged BTC stash was linked to the 2020LuBian mining pool hack, a major breach that drained thousands of coins from Chinese servers.

The National Computer Virus Emergency Response Centre (CVERC) in China published a report accusing the U.S. government of “orchestrating” the attack and later seizing the stolen Bitcoin. The U.S. Department of Justice, however, insists the coins were confiscated as part of an anti-fraud crackdown tied to Cambodia’s Huione Group.

The dispute has now become geopolitical, adding new uncertainty to the global crypto market and raising questions about state involvement in digital asset control.

What exactly happened in the LuBian Bitcoin mining pool hack?

The controversy traces back to December 2020, when the LuBian mining pool, one of China’s major Bitcoin networks, was hit by a massive breach. Around 127,426 BTC, worth about $3.5 billion at that time, disappeared from its hot wallet.

Blockchain analysts later suggested it wasn’t an ordinary cyberattack but possibly a “weak-key vulnerability” or even insider collusion, dubbed the “Milky Sad” flaw. The vulnerability involved poor randomness during private key generation, leaving the funds exposed.

In late 2025, U.S. authorities revealed they had seized those same Bitcoin — now valued near $13.3 billion — as part of a global fraud investigation. That announcement triggered immediate backlash from Beijing.

How is this Bitcoin dispute shaking global markets?

The diplomatic tension between China and the U.S. has unsettled crypto investors. Beijing’s sharp accusation — calling the U.S. a “state-level hacking organization” — has escalated what began as a legal matter into a geopolitical standoff.

The U.S. government has not officially commented beyond stating that the seizure followed lawful procedures. Meanwhile, global regulators are closely watching the situation, as the Bitcoin supply in question equals roughly 0.65% of total circulating BTC.

Over the past week, BTC has fallen nearly 4%, while its monthly performance shows a 5.5% decline. Despite the dip, Bitcoin’s market cap remains above $2 trillion, underscoring its continued dominance. Strong trading volumes indicate steady investor participation even as short-term sentiment stays cautious.

This supply tension could influence market liquidity and BTC price predictions in both directions — triggering volatility in the short term and altering long-term investor sentiment.

Could this dispute reshape Bitcoin’s price prediction for 2025?

Bitcoin is trading around $105,026, up 0.72% in the past 24 hours, with a market cap of $2.09 trillion, according to TradingView data. Technical charts show BTC holding support near the 356-day EMA and SMA levels around the $105K zone, forming a consolidation base after a mild correction.

Analysts warn that fear, uncertainty, and doubt (FUD) from the China-US spat could spark temporary outflows. Yet, some experts argue this could actually strengthen the “digital gold” narrative, as governments are now effectively treating Bitcoin as a strategic asset.

If the seized BTC remains locked and out of circulation, it could tighten supply — a potential bullish catalyst heading into 2026. On-chain data from Coinglass also indicates steady accumulation among Bitcoin ETFs and institutional investors, hinting at strong underlying demand.

While Bitcoin dominates headlines, attention is quietly shifting to Bitcoin Hyper (HYPER) — a Layer 2 scaling project built on Bitcoin’s network. Designed for fast, low-cost DeFi transactions, HYPER is drawing institutional attention amid the broader supply crunch narrative.

Recent blockchain data revealed two major whale purchases of HYPER tokens, signaling early institutional positioning. The project, still in its presale phase, offers staking yields up to 43%, with each token priced at $0.013255 and over $26.8 million raised.

As Bitcoin increasingly becomes a geopolitical asset, projects built atop its infrastructure could see outsized growth. If Bitcoin’s circulating supply stays constrained, Layer 2 ecosystems like HYPER may capture the next wave of liquidity and innovation.