The markets are controlled by whales who artificially inflate and then dump coins or tokens, rinse, repeat. Very many also just happen to be Chinese and very many of those are organized crime. It's not just a matter of selling off their remaining holdings. By manipulating trade through massive buy and sell transactions, and shorting stocks, collapsing the market, taking profits, their intake is multiplied.
Most of the currency will be moved to the U.S. or Canada, transferred to FIAT and then parked in commercial and larger residential real estate holdings, and then some returned to China.
More and more of it will be straight Bitcoin transactions, ignoring fiat. Wealthy Chinese people don't feel comfortable with their wealth in China, so they export it quickly and park it in real estate, which they can monetize further or flip. Bitcoin is the easiest way to do this by far, hence the crack down. This is all simply old fashioned getting while the getting is good.