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BlackRock Official: China Can Sell US Bonds to Buy Bitcoin and Altcoins! - Coin Bulletin
The leading central banks in the world, particularly groups led by China, are turning to alternative assets such as gold and Bitcoin (BTC) instead of U.S. Treasury bonds.
Recent increasing geopolitical tensions and global uncertainties are accelerating central banks' reserve diversification strategies. Jay Jacobs, the thematic investment and active ETF manager at BlackRock, stated in an interview with CNBC that central banks are tending to move away from traditional assets and are leaning towards Bitcoin and gold.
Jacobs emphasized that the transition of central banks from dollar-based reserves to gold and more recently to Bitcoin began approximately three to four years ago. Especially after Russia's invasion of Ukraine, the freezing of the Russian Central Bank's assets worth about 300 billion dollars led countries like China to reconsider their reserve strategies.
According to Jacobs, BlackRock believes that the key factor determining the course of global markets in the coming decades will be geopolitical division. This situation is also increasing investors' demand for price movements in independent assets.
In recent months, Jacobs emphasized that there have been significant inflows of money into both gold ETFs and Bitcoin. He stated that investors are turning to alternative assets that will move differently. Jacobs highlighted that the relationship between Bitcoin and US stocks has diminished, and he is not alone in this regard.
The CEO of the crypto analytics platform Nansen, Alex Svanevik, stated in a statement made on April 22 that Bitcoin price movements have started to resemble gold more than Nasdaq. Svanevik expressed that Bitcoin has shown resilience against global economic uncertainties but is still sensitive to the possibility of a recession.
QCP Capital stated that Bitcoin has regained popularity as a gold-like hedge against macroeconomic uncertainties and that this could create new support for institutional investors to increase their BTC purchases.