Bitcoin (BTC) Eyes Gains as China Accelerates US Treasury Selloff Amid Debt Volatility Fears

China's holdings of US Treasuries fell to $688.7 billion in October 2025, down from $700.5 billion in September Indonesia Finance Market, marking the lowest level in 17 years as Beijing instructs domestic banks to limit purchases and begin selling US government bonds. The move comes amid concerns that exposure to US debt could leave Chinese financial institutions vulnerable to sharp market fluctuations.

China has sold Treasuries for nine months in a row, pushing exposure to the lowest level since the global financial crisis Yahoo Finance. This sustained selloff reflects growing unease about America's $38 trillion debt burden and ongoing trade tensions that have seen US tariffs on Chinese goods reach 30%.

Bitcoin stands to benefit from this de-dollarization trend. When trust in traditional systems wobbles, people search for alternatives Yahoo Finance, positioning BTC as a digital hedge alongside gold, which recently surged toward $4,200 per ounce.

Global dollar reserves now sit near 57–58%, the lowest since the 1990s while central bank gold holdings have doubled since 2014. Though central banks aren't directly buying Bitcoin yet, the cryptocurrency benefits from the same uncertainty driving gold higher.