Assessing how China’s strategic moves are challenging Trump’s crypto plans

Is the global economic order shifting? Lately, many economies are questioning the U.S dollar’s dominance (DXY) as inflation erodes other currencies, like the Japanese Yen (JPY) hitting multi-year lows.

From a technical perspective, the JPY/DXY ratio has logged four straight yearly drawdowns, dropping by roughly 35% to 0.06 – A level last seen in the late 1980s, pushing Japan into a renewed economic crisis today.

Against this backdrop, it’s not surprising that China appears to be acting early to limit broader fallout, with its U.S Treasury holdings falling to an 18-year low of $686.6 billion in November 2025.

In practical terms, falling Treasury holdings usually point to less dependence on U.S debt, broader diversification into alternative assets, and a “strategic” effort to reduce exposure to the dollar-driven volatility.

China’s gold reserves seemed to reinforce this shift. Gold holdings climbed to a record 2.3k tonnes, moving in lockstep with the sell-off in the U.S Treasuries, underscoring China’s growing role in reshaping the global economic order.

Notably, this move isn’t isolated. Other countries are following suit, fueling a broader “gold rush.” As Kobeissi Letter noted, investors added $95 million to the gold ETF, marking the largest single-day inflow since October 2025.

In essence, the gold rally looks like it’s just getting started, strongly backed by China. Hence, the question is – Where does this leave Bitcoin [BTC], and more broadly, U.S President Donald Trump’s “crypto capital” dream?

China’s role shifts the Bitcoin and crypto-capital debate

The shift in the global economic order comes at a tough time. 

With momentum building against the U.S dollar and gold reclaiming its “safe-haven” status, U.S economic stress is showing thanks to rising debt and a “shift” of investor capital towards China’s tech stocks.

And yet, the U.S isn’t stepping away from its crypto ambitions. The SEC recently announced a joint meeting with the CFTC to “deliver on President Trump’s promise” of making the U.S the crypto capital of the world.

However, China’s moves are reshaping the global order. On one hand, they are testing Bitcoin’s safe-haven status, as investors flock to gold, silver, and other metals, while U.S. Treasury sell-offs push yields near 5%.

From a technical perspective, BTC is losing momentum, still down roughly 30% from its $126k peak. Gold, by contrast, is breaking records, highlighting a clear shift in what investors now see as the go-to “hedge.”

What’s more, analysts say this could be just the beginning.

In fact, some are already speculating a $7,000/oz target for gold. In this setup,  China is emerging as a major hurdle. Nor just for Bitcoin, but for U.S President Trump’s broader push to lead the global crypto market.

Final Thoughts

• China is reshaping the global order, with treasury sell-offs and record gold accumulation challenging Bitcoin and global U.S influence.
• Gold has been rallying, with analysts eyeing $7,000/oz on the charts and highlighting a changing investor preference.