Is the global economic order shifting? Lately, many economies are questioning the dominance of the US dollar (DXY) as inflation erodes other currencies, such as the Japanese yen (JPY) hitting multi-year lows.
From a technical perspective, the JPY/DXY ratio has seen four consecutive annual declines, falling roughly 35% to 0.06 – a level last seen in the late 1980s that pushed Japan into renewed crisis. economic crisis Today.
Against this backdrop, it is not surprising that China appears to be acting early to limit the wider fallout, with its US government bond yields falling to an 18-year low of $686.6 billion in November 2025.
Source: TradingEconomics
In practice, falling government bonds generally indicate reduced reliance on US debt, broader diversification into alternative assets and a ‘strategic’ attempt to reduce exposure to dollar-driven volatility.
Chinas gold reserves seemed to reinforce this shift. Gold inventories rose to a record 2.3k tonnes, in line with the sell-off in US Treasuries, underscoring China’s growing role in reshaping the global economic order.
Notably, this step is not an isolated step. Other countries are following suit, fueling a broader ‘gold rush’. If Kobeissi letter As noted, investors added $95 million to the gold ETF, marking the largest single-day inflow since October 2025.
In essence, the gold rally appears to have just begun, strongly supported by China. Therefore, the question is: where does that leave Bitcoin? [BTC]and more broadly, US President Donald Trump’s ‘cryptocapital’ dream?
China’s role is changing the debate about Bitcoin and crypto capital
The shift in the global economic order comes at a difficult time.
As momentum builds against the US dollar and gold reclaims its ‘safe haven’ status, economic tension in the US is visible due to rising debt and a ‘shift’ in the economy. investor capital towards Chinese technology stocks.
And yet the US is not moving away from its crypto ambitions. The SEC recently announced a joint meeting with the CFTC to “fulfill President Trump’s promise” to make the US the crypto capital of the world.
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However, China’s steps are reshaping the world order. On the one hand, they are testing Bitcoin’s safe-haven status as investors flock to gold, silver and other metals, while the sell-off in U.S. Treasury bonds pushes yields to nearly 5%.
From a technical perspective, BTC is lose momentumstill down about 30% from the peak of $126,000. Gold, on the other hand, is breaking records, highlighting a clear shift in what investors now see as the go-to ‘hedge’.
Moreover, analysts say this could be just the beginning.
In reality, Some are already speculating a target of $7,000/oz for gold. In this situation, China emerges as a major hurdle. Not just for Bitcoin, but also for US President Trump’s broader push to lead the global crypto market.
Final thoughts
- China is reshaping the world order, with its sell-off of government bonds and record gold accumulation challenging Bitcoin and US global influence.
- Gold is on the rise, with analysts eyeing $7,000/oz on the charts and highlighting a changing investor preference.