China Dumps U.S. Treasuries: Here’s Why Bitcoin Cares

Group 1 - China has reduced its U.S. Treasury holdings for nine consecutive months, reaching the lowest level since 2008, indicating a lack of confidence in U.S. debt as a safe asset [1][4] - The global dollar reserves have decreased to approximately 57-58%, the lowest since the 1990s, while central bank gold holdings have doubled since 2014, suggesting a shift in investment strategies [5] - Bitcoin is emerging as a digital alternative to gold, benefiting from macroeconomic uncertainty and the declining trust in traditional government debt [5][6] Group 2 - The selling of U.S. Treasuries by major countries like China and Japan signals a potential shift in how money flows across various asset classes, impacting everyday investors [2][6] - Gold prices have surged to $4,200 per ounce, reflecting central banks' diversification strategies, while Bitcoin tends to lag behind but eventually catches up as retail investors react to the same macroeconomic narratives [6][7] - The U.S. may face increased pressure to attract buyers for its debt, as indicated by Japan's potential use of its $1.1 trillion Treasury holdings as a negotiation tool [6]