Bitwise said China and Japan's Move Will Benefit Bitcoin: Ready for Rise! - Coin Bulletin

The depreciation of the US dollar and the reduced demand for Treasury bonds support the rise of Bitcoin and gold.

The reduction of US Treasury bonds by China and Japan has led to a loss of confidence in the bond market and a decrease in the dollar's share of international reserves. Bitwise Europe Research Director André Dragosch stated that investors no longer see US bonds as the safest asset. While the 10-year US bond yield fell from 4.79% to 4.5%, central banks' gold purchases reached the highest level in the past 10 years.

Dragosch, who says that the interest of US investors in gold is increasing, stated that the increase in COMEX gold stocks in the US supports this situation. In addition to gold, Dragosch pointed out the increasing institutional and state-based demand for Bitcoin, stating that Bitwise's US office received a request from a foreign central bank to deposit some of the US bonds into spot Bitcoin ETFs. He added that the Czech National Bank is also conducting a similar research.

Dragosch said that the Ukraine-Russia war that began in 2022 and Russia's frozen assets have accelerated the global de-dollarization process. Although the use of the dollar in SWIFT transactions has increased, the percentage of the dollar in international reserves has shown a decrease, indicating that investors no longer see the dollar as a safe store of value.

Bitcoin has been following a volatile course, reaching $108,000 on January 20th and currently trading around $97,500. Due to global economic uncertainties, investors continue to move away from the US dollar and towards alternative assets.