China could move to Bitcoin and Gold amid global uncertainty and geopolitical tensions, potentially diversifying outside the US Treasury department, said BlackRock Theme and Equity ETF Director Jay Jacobs.
Jacobs said central banks around the world have diversified outside the US dollar for decades. Gold and Bitcoin are among the latest participants in the list of alternative assets that banks have increasingly relied on over the past three to four years, he added.
BlackRock executives made a statement in an interview with CNBC on April 25th.
In the long run, crypto is being separated from US tech stocks, even if the crypto market has been so tied to the stock and bond markets due to recent tariff tensions.
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Jacobs argued that Bitcoin behaves differently than traditional assets. The latter depends on higher growth, higher certainty, and lower geopolitical risks to thrive, but not the former. These factors are the opposite drivers of Bitcoin. “More uncertainty” will thrive, he added.
Unlike stocks and bonds, assets like Bitcoin and gold should continue to surge in value over the long term, if there is a trajectory of large uncertainty around the world, Jacobs said.
BlackRock itself has discovered that geopolitical fragmentation is a “huge force” driving the market for decades to come, and that Bitcoin is the result, executives said.
China held $784.3 billion in the US Treasury until the end of February, according to the US Treasury Department.
China’s anvil was valued at $229.6 billion at the end of March, the Economic Times reported on April 21.
China had 194,000 btc worth $18 billion at the time of writing, according to Bitcoin’s Treasury.
According to Kraken’s price supply, Bitcoin was trading at $95,087.43 at the time of press.