China may shift from US Treasurys toward gold, crypto — BlackRock exec
Central banks, particularly in China, are considering reducing their holdings of US Treasurys and exploring alternatives like gold and Bitcoin due to rising geopolitical tensions and global uncertainty. BlackRock's Jay Jacobs noted a long-term trend of countries diversifying away from dollar-based reserves towards assets such as gold and Bitcoin, a shift that has intensified in light of recent events like the freezing of Russian central bank assets. Jacobs identified geopolitical fragmentation as a significant force shaping global markets, driving demand for uncorrelated assets. He highlighted significant inflows into gold and Bitcoin ETFs as investors seek safe-haven assets. Analysts have observed Bitcoin's decreasing correlation with US equities, suggesting it is maturing as a global asset and being viewed similarly to gold as a hedge against macroeconomic uncertainty.
