Central Banks Exploring Alternatives to US Treasurys

Central banks, led by China, are considering moving away from US Treasurys towards assets like gold and Bitcoin, as stated by Jay Jacobs, BlackRock’s head of thematics and active ETFs. Geopolitical tensions and global uncertainty are driving this shift, with countries reducing their reliance on the dollar in favor of gold and Bitcoin. Jacobs highlighted the trend of diversification from traditional assets to alternative stores of value, which began a few years ago. Recent events, such as the freezing of Russian central bank assets, have further prompted countries like China to rethink their reserve strategies. BlackRock has identified geopolitical fragmentation as a key factor shaping global markets, leading to increased demand for uncorrelated assets like Bitcoin and gold. Analysts also note Bitcoin's decreasing correlation with US equities, positioning it as a safe-haven asset amidst economic uncertainties. Read more AI-generated news on: https://app.chaingpt.org/news