China’s gold and Treasury moves challenge Trump’s bid to make the US the ‘crypto capital’
China has reduced U.S. Treasury holdings to an 18-year low ($686.6B in Nov 2025) while raising official gold reserves to a record ~2,300 tonnes. The article argues these moves signal strategic diversification away from dollar exposure and are fueling a global shift into gold — investors added $95M into gold ETFs in the largest single-day inflow since Oct 2025. That trend is testing Bitcoin’s safe-haven case: BTC is down roughly 30% from its $126k peak and losing momentum as yields near 5% following Treasury sell-offs. Meanwhile the U.S. is pursuing President Trump’s agenda to make the country the world’s “crypto capital,” with the SEC and CFTC holding joint talks to advance U.S. crypto leadership. The piece frames China’s actions as a broader geopolitical and market headwind for Bitcoin and for U.S. efforts to dominate crypto markets.
Bearish
China’s sustained reduction of U.S. Treasury holdings and simultaneous record gold accumulation suggest a macro-driven shift of capital toward traditional safe-havens. That dynamic typically reduces risk appetite for speculative or risk-on assets, including cryptocurrency. Specific signals in this article: (1) China cut Treasuries to an 18-year low while boosting gold reserves to ~2,300 tonnes; (2) large ETF inflows into gold ($95M single-day); (3) BTC down ~30% from its $126k peak and losing momentum; (4) U.S. yields rising toward ~5% after Treasury sell-offs. High yields and stronger demand for gold both make BTC less attractive as a hedging instrument in the near term, pressuring price and volatility. Historically, similar macro rotations (e.g., during sustained Treasury sell-offs or periods of safe-haven gold demand) have produced bearish pressure on crypto markets in the short to medium term. For traders: expect increased correlation with risk-off indicators, potential downward pressure on BTC and liquid altcoins, and heightened volatility around macro data (inflation, Treasury auctions) and policy announcements (SEC/CFTC meetings). Longer term, outcomes depend on U.S. regulatory progress and whether crypto can demonstrate distinct utility or adoption that decouples it from macro safe-haven flows. If the U.S. advances clearer pro-crypto policy and capital flows return, the bearish impact could reverse; absent that, structural headwinds from reserve diversification and higher real yields will likely keep broader sentiment cautious.