The upward wave of gold is still accelerating, while the cracks in US dollar hegemony are widening.

Just looking at the latest data reveals how intense this change is. The U.S. Treasury Department reports that in October, China sold another $11.8 billion worth of U.S. Treasuries, bringing its holdings down to $688.7 billion—this number harks back to the 2008 financial crisis, suggesting a replay of history. More painfully, Canada sold a direct $56.7 billion of U.S. debt during the same period, showing full firepower.

Interestingly, while one side is reducing holdings, others are stepping in to buy. Japan quietly increased its holdings by $10.7 billion, and the UK also added $13.2 billion. The same U.S. Treasuries, different choices—this reflects more than just investment decision differences; it marks a watershed in the global financial camp.

**The True Logic Behind the Numbers**

China’s series of actions is not a sudden whim. Looking back at history makes this clear—back in 2013, China’s U.S. debt holdings peaked at $1.3 trillion, and now they have cut nearly in half. This adjustment is not a casual game; it’s a strategic shift involving real money.

The reason is straightforward. The total U.S. federal debt has now surpassed $38 trillion, with debt-to-GDP ratio reaching 130%—in other words, annual interest payments exceed $1 trillion. Under these fundamentals, any reasonably intelligent investor would consider how to hedge risks. Plus, with the U.S. government facing a 43-day shutdown in 2025, such "black swan" events accelerate capital transfer.

The most direct phenomenon is: China is selling U.S. debt while continuously increasing gold reserves for 12 consecutive months, now exceeding 74 million ounces. This "shifting from paper assets to hard currency" logic is clearer than ever— the safety margin of U.S. Treasuries has declined, and gold’s attractiveness has risen. This asset reallocation also triggers a chain reaction in liquidity expectations for digital assets like Bitcoin.

**The U.S. Treasury Market Is Quietly Splitting**

This round of divergence in the U.S. Treasury market is unprecedented. The significant reduction by China and Canada contrasts sharply with Japan and the UK’s increased holdings. This indicates that global investors’ outlook on U.S. debt has become markedly divided—no longer a "band together" era, but each betting on their own, showing their unique strategies.

For blockchain circles and financial market observers, what does this divergence mean? It signifies that global liquidity is being reallocated, that the loosening of the dollar’s dominant position will push up the relative value of other assets, and that new trading opportunities are brewing. U.S. Treasury yields, the dollar index, gold prices, Bitcoin liquidity—all these seemingly independent indicators are actually interconnected in the same global capital game.