Posts on X (Twitter) suggest that Bitmain co-founder Micree “James” Zhan Ketuan may be facing a billion-dollar fine, alleged detention, and a complete fallout with business partner Jihan Wu.

Conflicting reports leave the crypto community scrambling to verify the details of one of the sector’s most high-profile crises.

Bitmain Co-Founders at Center of Growing Speculation and Uncertainty

Bitmain, a pioneer in Bitcoin mining hardware, controls equipment powering over 74% of the global Bitcoin hash rate. It is also responsible for chips used in AI data centers running Nvidia H100s.

The company now finds itself at the intersection of geopolitics, legal scrutiny, and internal corporate strife.

On December 21, 2025, crypto veteran Chandler Guo sparked speculation with a cryptic social media post referencing an industry colleague’s “deep-sea fishing” ordeal. The term is used to describe covert detention in China, worth several billion dollars over six months.

According to Guo, while the individual emerged safely, he had learned a hard lesson that even the biggest backers are not reliable. When they fall, their associates suffer as well.

“There’s an old friend from the crypto circle by my side who just went through an experience of being deep-sea fished. It’s said to involve several billion US dollars, and he’s been dealing with it for half a year. Fortunately, the person has already safely come out of it…He relied on his backer’s connections to strike down his opponents, but he also got bitten back by the backer’s own enemies,” wrote Guo.

Observers quickly connected Guo’s account to Zhan. Rumors circulating in crypto circles indicate fines ranging from $1 billion to $10 billion, though none have been officially confirmed.

Some reports claim Zhan paid a $1 billion penalty, while others allege he fled to Indonesia two months ago and remains missing. A Chinese community lead, popular on X, confirmed two key developments:

• Recent disruptions in Xinjiang’s mining operations and
• Escalating internal conflict between Bitmain’s co-founders.

Dual CEO System Collapses Amid Founder Conflict

Bitmain’s dual CEO structure, which allowed both Zhan and Wu to lead the company, collapsed completely in 2025. Wu, a Peking University graduate, reportedly used political connections to challenge Zhan, a Chinese Academy of Sciences alumnus who focused on chip design and production.

Their rift mirrors broader industry risks, demonstrating the dangers of intertwining business with influential backers.

This alleged internal upheaval comes as Bitmain faces mounting external pressures. While Zhan historically focused on technical operations, Wu has led strategic partnerships and business development.

The absence of either founder could leave operational gaps at a time when Bitmain remains central to Bitcoin mining worldwide. The firm is already facing a lawsuit from Old Const alleging breach of a hosting deal and attempts to reclaim mining hardware without cause.

Geopolitical Risks and Infrastructure Vulnerabilities

Beyond corporate disputes, Bitmain faces scrutiny from US authorities over potential hardware security threats. In June, Bitmain and two other firms relocated to the US to bypass new tariffs and optimize supply chains.

However, with the company’s mining infrastructure embedded in both crypto and AI data centers, national security concerns amplify the stakes.

Any compromise could ripple through global Bitcoin networks, highlighting crypto’s ongoing vulnerability to geopolitical tensions.

Recent crackdowns on Xinjiang mining farms, combined with Zhan’s alleged detention, have fueled speculation of coordinated regulatory pressure.

The crypto sector remains vigilant, as the situation could impact mining hardware markets, supply chains, and competitive dynamics.

The post Reports Spark Questions About Bitmain Leadership and Internal Disputes appeared first on BeInCrypto.

The US dollar’s global reserve share dropped to 56.32% in Q2 2025, but 92% of that decline was driven by exchange-rate effects, not central bank portfolio changes. Currency adjustments show a marginal decline to just 57.67%, indicating central banks largely maintained their USD holdings.

The International Monetary Fund’s new Currency Composition of Official Foreign Exchange Reserves (COFER) report provides important insights for crypto investors tracking macroeconomic trends. The data reveals that central banks kept dollar allocations steady, even amid notable currency swings during the quarter.

IMF: Central Banks Stayed Dollar-Heavy Despite Depreciation

The IMF’s COFER dataset tracks currency reserves from 149 economies in US dollars. In Q2 2025, major currency movements gave the impression of large portfolio reallocations.

According to the report, the DXY index declined by more than 10% in the first half of 2025, its biggest drop since 1973.

The US dollar declined 7.9% against the euro and 9.6% against the Swiss franc in Q2. These swings lowered the USD reserve share from 57.79% to 56.32%. However, this reduction reflected exchange-rate effects rather than active reallocation.

Adjusted for constant exchange rates, the dollar’s reserve share edged down only 0.12% to 57.67%. This indicates that central banks made minimal changes to their dollar reserves during the quarter, challenging stories of global dedollarization.

Similarly, the euro’s reserve share appeared to rise to 21.13%, an increase of 1.13 points. Yet, this was also driven entirely by currency valuations.

At constant exchange rates, the euro’s share declined slightly by 0.04 points, showing central banks actually trimmed euro holdings.

What This Means for Bitcoin and Altcoins

This analysis offers muted macro signals for Bitcoin and other digital assets marketed as hedges against US dollar weakness. Central banks did not diversify away from the dollar even as the currency depreciated significantly.

Dedollarization trends are often highlighted as possible drivers of institutional adoption of crypto. However, the COFER data, once adjusted for exchange rates, suggest that these trends can be misleading without proper context.

The British pound also saw its reserve share appear to grow in Q2, but this was another valuation effect covering up a real decrease in holdings. These findings demonstrate why investors should look beyond headline numbers to understand the actual shifts in liquidity.

The IMF’s study provides investors a more accurate view of monetary policy during volatile markets. By distinguishing between true policy moves and temporary valuation changes, crypto investors can better evaluate global macro trends.

Central Bank Reserve Strategies and Outlook

Dollar holdings remained stable in Q2 2025, showing central banks still rely on traditional currencies even as digital alternatives gain attention. The IMF emphasized that exchange-rate adjustments are crucial for understanding reserve shifts accurately.

The US dollar’s share of global foreign reserves held steady in Q2, after adjustment for currency fluctuations. Exchange-rate effects drove nearly all the decline in the US currency’s share of reserves. Our blog has the details. https://t.co/XtaRfBIbqL pic.twitter.com/fXcUkRkg7U

— IMF (@IMFNews) December 21, 2025

Central banks prioritize liquidity, returns, and risk when managing reserves. The dollar’s strong position is linked to deep markets, high transaction utility, and established systems. These aspects are still hurdles for digital assets to overcome.

The IMF’s methodology reveals how currency changes can distort reserve data. In Q2, nearly all reported shifts in major currencies resulted from valuation swings, not actual portfolio rebalancing. Central banks maintained a careful stance during the market’s turbulence.

These findings help clarify global trends shaping crypto markets. Investors interested in dedollarization as a Bitcoin catalyst should rely on exchange-rate-adjusted numbers.

The post IMF Q2 2025 COFER Data Weakens Dedollarization Narratives Cited as Bullish Catalysts for Bitcoin appeared first on BeInCrypto.

Bitcoin’s price may still dominate headlines, but among analysts and institutional strategists, attention is quietly shifting elsewhere.

Instead of debating whether Bitcoin can reclaim upside momentum in the near term, market observers are increasingly focused on a deeper question: whether the structural signals that once reliably guided Bitcoin’s four-year cycle are beginning to fracture.

Analysts Are No Longer Looking at Bitcoin Price As Demand Signals Quietly Deteriorate

The shift comes on the backdrop of fading demand indicators, rising exchange flows, and a growing divide between analysts.

On the one hand, some believe Bitcoin is entering a traditional post-peak correction. On the other hand, others argue that the pioneer crypto may be breaking free from its historical cycle altogether.

Analyst Daan Crypto Trades argues that recent price behavior has already challenged one of Bitcoin’s most dependable seasonal assumptions.

“BTC Looking ahead, Q1 is generally a good quarter for Bitcoin, but so was Q4, and that one didn’t quite work out this time. No doubt 2025 has been a very messy year. Massive inflows and treasury accumulation, which were matched by big OG whales and 4-year cycle selling. Q1 2026 is where Bitcoin has a chance to show whether the 4-year cycle persists or not,” he wrote.

Rather than signaling a definitive breakdown, the underperformance suggests friction. ETF inflows and corporate accumulation are being absorbed by long-term holder distribution, muting the impact those inflows once had on BTC price.

That structural tension is also visible in US spot market data. According to Kyle Doops, the Coinbase Bitcoin premium, often used as a proxy for US institutional demand, has remained negative for an extended period.

The Coinbase $BTC premium has stayed negative for 7 straight days, now around -0.04% per Coinglass.

That usually signals U.S. spot demand is lagging the rest of the market.

Less aggressive institutional buying, softer risk appetite, and capital staying cautious.

Not panic, but… pic.twitter.com/HtjNSorO1I

— Kyledoops (@kyledoops) December 21, 2025

The message is not capitulation, but hesitation, which means capital is present, yet unwilling to chase.

Exchange Flows Point to Distribution, Not Accumulation

On-chain data highlights the need for cautious interpretation, as Bitcoin exchange inflows surge to levels historically associated with late-cycle behavior.

“Monthly exchange flows have surged to $10.9 billion, the highest since May 2021. High exchange flows like this signify increased selling pressure, as investors move assets onto exchanges to liquidate positions, take profits, or hedge against downturns. This is further evidence of a market top and the start of a bear market amid heightened volatility,” said analyst Jacob King.

Historically, similar spikes have coincided with profit-taking phases rather than early accumulation periods.

If History Holds, Cycle Math Still Points Lower with Institutions Split but Disciplined

On-chain analyst Ali Charts argues that despite structural changes, Bitcoin’s timing symmetry remains striking.

“Bitcoin’s price cycles have followed a strikingly consistent pattern, both in timing and magnitude. Historically, it takes around 1,064 days from the market bottom to the market top, and about 364 days from the top back to the next bottom,” he wrote, outlining how previous cycles adhered closely to that rhythm.

If that pattern persists, the analyst suggests that the market may now be inside its corrective window. Historical retracements imply further downside before a durable reset.

At the institutional level, views are diverging without turning chaotic. Fundstrat’s Head of Crypto Strategy Sean Farrell acknowledged near-term pressures while maintaining a longer-term bullish framework.

“Bitcoin is currently in a valuation ‘no man’s land’,” Farrell said, citing ETF redemptions, selling by original holders, miner pressure, and macro uncertainty. Still, he added, “I still expect Bitcoin and Ethereum to challenge new all-time highs before the end of the year, thereby ending the traditional four-year cycle with a shorter, smaller bear market.”

The Cycle Debate Is Now Institutional

That possibility is echoed by Tom Lee, whose view has been amplified across crypto commentary, suggesting that Bitcoin will soon break its 4-year cycle.

TOM LEE THINKS BITCOIN WILL BREAK THE 4-YEAR CYCLE SOON! pic.twitter.com/eWZdW7xkgW

— Crypto Rover (@cryptorover) December 21, 2025

Fidelity’s Jurrien Timmer takes the opposite stance. According to Lark Davis, Timmer believes Bitcoin’s October peak marked both a price and time top, with “2026… a down year” and support forming in the $65,000–$75,000 range.

"The bear market is here and Bitcoin is heading down to $65,000"

That's what Fidelity's director of global macro Jurrien Timmer thinks.

While Jurrien is bullish on $BTC in the long term, he believes that Bitcoin is once again following its historical 4-year cycle driven by its… pic.twitter.com/KFPcBWTcZP

— Lark Davis (@LarkDavis) December 21, 2025

Together, these perspectives show why analysts are no longer fixated solely on Bitcoin price. The pioneer crypto’s next move may not decide who was bullish or bearish, but whether the framework that has defined its market for over a decade still applies at all.

The post Analysts Look Beyond Bitcoin’s Price As Tom Lee Flags a Structural Shift appeared first on BeInCrypto.