$PAXG
China has significantly reduced its U.S. Treasury holdings to an 18-year low. Concurrently, Beijing is accumulating gold at a record pace, marking a strategic shift in global reserves.
Beijing's U.S. government debt holdings are now $682.6 billion, down from over $1.1 trillion. This positions China third, behind Japan and the UK, in Treasury ownership.
Meanwhile, the People's Bank of China (PBOC) has pushed gold reserves to 2,306 tonnes. This extends an impressive 14-month buying streak, signaling sustained interest in the metal.
This trend is highly significant, demonstrating a major superpower's active de-dollarization. For years, China recycled trade surpluses into U.S. Treasuries—a safe, liquid, dollar-denominated playbook.
However, that established playbook is now being rewritten. Geopolitical tensions make holding another nation's debt feel more like a liability than an asset.
A key factor is gold's immunity to sanctions risk. Unlike other assets, physical bullion stored in a sovereign vault cannot be frozen.
For the U.S., this implies declining demand from a major buyer amidst expanding deficits. For gold, sustained central bank buying creates a strong structural price floor.
$BTC
For Bitcoin proponents, this sovereign shift validates the "hard asset" thesis. Central bank moves could underpin the long-term value of digital scarcity.
Still, for this thesis to fully take hold, sovereigns must actually recognize and integrate Bitcoin as a hard asset into their reserve strategies.
One important caveat: Treasury data may undercount actual Chinese holdings. This is due to custodial accounts in other countries, suggesting the true figure could vary.
🚨 Disclaimer: For informational purposes only. Not financial advice. Always research and consult a professional before investing. Thank you. 📈
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