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Important signals suddenly sent from China and the United States! China is selling a large amount of US government bonds, with BTC poised to become a "substitute" international currency. The competition between the two major economies of China and the US is extending from trade and technology to the financial battlefield. China remains indifferent to threats, continuing to sell US debt at the risk of angering the White House. This not only reflects the intensification of geopolitical tensions but also highlights concerns about the US fiscal situation. Meanwhile, Bitcoin is on the move, aiming to become an alternative international currency. Currently, foreign investors hold only 31% of US debt, far below nearly 60% in 2008, and this data hides profound changes in the global monetary landscape. Today (25th) during the Asian afternoon session, Bitcoin is temporarily reported at around $115,650, continuing to pull back from its historical high. The twilight of the dollar? China's continued reduction of US bonds has seen the UK surpass China, becoming the second-largest holder of US public debt globally. The UK, as an ally, currently holds $779 billion, partially replacing the BRICS nations that are reducing their holdings. China has fallen to third place, holding $765 billion. Japan remains the largest holder, with $1.113 trillion. It is worth noting that the increase in the UK's holdings does not stem from a trade surplus like Japan and China. London is a global financial center, providing intermediary services for many multinational companies, some of which are actually American firms. The situation is similar in the Cayman Islands, Luxembourg, Belgium, and Ireland, where these countries' dollar reserves are completely depegged from GDP. China is moving in the opposite direction. Its dollar reserves, which peaked at $1.3 trillion in 2013, have been declining continuously. China is clearly shifting towards gold and European bonds. Although China purchased $23 billion in US Treasury bonds in February, it is still insufficient to offset its maturing holdings. The geopolitical tensions and US fiscal concerns reflected in China's gradual exit show the intensification of geopolitical tensions and worries about the US fiscal situation. It is expected that by 2025, revenues will reach $5.2 trillion while expenditures will exceed $7 trillion. Meanwhile, the pressure facing the Federal Reserve Chair is increasing, indicating that Republicans have chosen a shortcut. Donald Trump is undoubtedly considering a new quantitative easing policy (printing money). Furthermore, China has noticed that the EU has frozen Russia's €300 billion forex reserves. How long will it take for the US to take similar measures against China? This is the reason for the US imposing tariffs on Ukraine and stoking tensions, with the ultimate goal of preventing BRICS nations from de-dollarizing too quickly. The chart indeed shows that foreign investors currently hold only 31% of US debt, down from nearly 60% at the onset of the 2008 subprime crisis and the start of quantitative easing. Brazilian President Luiz Inácio Lula da Silva recently strongly criticized Donald Trump over tariffs, stating, "No foreigner will dictate orders to this president." He emphasized: "We are tired of being constrained by North Korea. […] We are discussing the possibility of creating our own currency, or perhaps we can trade using our own currency without relying on the dollar. […] I am not obligated to buy dollars to trade with countries like Venezuela, Bolivia, Chile, Sweden, the EU, or China. We can use our own currency. Why should I peg to the dollar, which is a currency I cannot control? The dollar is printed by the US, not us." Lula's remarks represent the dissatisfaction of many emerging countries with dollar hegemony and their desire for alternatives. Why not use Bitcoin? The dilemma of BRICS nations and the potential of Bitcoin. BRICS countries often talk about new currencies, but there are currently no concrete measures. Such a currency is unlikely to ever emerge. For such diversified economies and cultures, replicating the European model would be extremely dangerous. This is indeed a problem. For example, Russia stopped accepting the Indian rupee as a settlement currency for oil trade early last year. The reason is that India does not produce the products (high-tech, automobiles, machinery) that Russia needs like China does. Partly due to this issue, central banks around the world have accumulated a large amount of gold in recent years. In the long run, gold remains the universally accepted store of value. However, gold trading is not smooth, far from it. In contrast, Bitcoin can relatively easily integrate into financial markets like the St. Petersburg International Mercantile Exchange (SPIMEX). Today, trading volume has become large enough that trading fees have been declining for years. Of course, Bitcoin is highly volatile, but the lightning network and stablecoins can mitigate this short-term exchange rate risk. Bitcoin is stateless, cannot be "frozen," and is of absolutely limited quantity, destined to become a top international currency. This is why the US wants to accumulate wealth as much as possible before other countries in the world do. This is to hedge against a currency that allows equal trade among countries. The strategic considerations of the US: Bitcoin and de-dollarization. Donald Trump knows that the US will eventually have to give up excessive privileges to reduce the trade deficit. But it's better to do it late than early because re-industrialization cannot be achieved overnight. If other countries in the world allow them to accumulate enough Bitcoin to buffer against de-dollarization, the US might sheathe its sword and let us remain optimistic. This shows that the US's attitude towards Bitcoin may not only be regulatory but also a strategic layout. By actively participating in the Bitcoin market and even incorporating it into national strategic assets, the US may retain a degree of influence amid the global wave of de-dollarization or at least prepare for future changes in the monetary landscape. China's continued selling of US bonds and the BRICS nations' calls for de-dollarization together pose a challenge to dollar hegemony. Against this backdrop, Bitcoin, as a stateless and censorship-resistant digital asset, is increasingly highlighted as an alternative international currency. The evolution of US policy towards Bitcoin also hints at its deep considerations for the future monetary landscape. This global game surrounding monetary dominance is pushing Bitcoin to the center of the international financial stage.
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