Why China Might Ditch Dollars for Gold & Crypto (No, It’s Not A Sci-Fi Plot)

Imagine a universe where central banks—yes, those mysterious money-hoarders—get tired of hoarding the same old thing: US Treasurys. Enter China, stage left, possibly swapping their green paper promises for shiny gold and, wait for it… Bitcoin. Jay Jacobs, the big cheese of thematics and active ETFs at BlackRock (that’s the world’s largest money wizard club), spilled the cosmic beans in a recent CNBC chat.

Apparently, geopolitical drama and an all-you-can-worry global buffet are nudging these banks to diversify like they’re picking toppings for the ultimate financial pizza.

Jacobs points out that this trend of fleeing dollar domination has been simmering for three to four years — like a slow-cooked conspiracy stew — with gold shining bright and Bitcoin blinking its pixelated eyes, trying to look regal.

“Diversification away from traditional assets into gold and crypto probably started before your favorite TikTok dance,” Jacobs quipped (not really, but you get the vibe).

He also mentioned that recent global soap operas, such as the $300 billion Russian asset freeze due to Ukraine, have everyone rethinking their secret treasure chests. Spoiler alert: China might be eyeing the crypto-jungle gym as its new playground.

The Grand Theory of Geopolitical Market Fragmentation (Cue Dramatic Music)

In the interview, Jacobs pulled out his crystal ball and declared geopolitical fragmentation the latest mega-force shaking markets like an intergalactic blender on high speed.

“We’re talking about a mega-force that’s going to be the boss for decades to come.”

Because the world’s less predictable than a cat on caffeine, investors are scrambling for “uncorrelated” assets—fancy finance-speak for “things that don’t flop together.” Bitcoin and gold are now frenemies turned allies in this cosmic safe-haven quest.

“Gold ETFs and Bitcoin have become the cool kids on the block with nonstop inflows,” Jacobs observed, probably while sipping some metaphorical space tea.

Bitcoin: Less Wall Street Drama, More Midas Touch

Jacobs isn’t the only one chanting the “Bitcoin is becoming less like Nasdaq and more like gold” mantra. Alex Svanevik, crypto-nerd and CEO of Nansen, said Bitcoin’s price dance is maturing into a global asset superstar.

Amid trade wars and economic storm clouds, Bitcoin stayed surprisingly zen, even if altcoins and the S&P 500 were having their own meltdown episodes.

Bitcoin gold and treasurys, probably plotting world domination

QCP Capital even noted Bitcoin grabbing some of gold’s spotlight as the star hedge against economic uncertainty. With stocks looking a bit like “the red sea” lately, Bitcoin’s safe-haven story might just be the financial superhero’s next big movie.

“If this narrative sticks, institutional investors might finally invite Bitcoin to the fancy portfolio party,” they said.

So, if you thought your investment portfolio was just a boring soup of stocks and bonds, maybe it’s time to sprinkle in some crypto glitter and gold dust—just don’t ask the Vogons for advice.

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2025-04-25 15:21