China vs. U.S.: A New Era in Gold and Bitcoin Reserves Race
China is making bold moves in global finance by rapidly increasing its gold and Bitcoin reserves—raising questions about whether it’s aiming to challenge the long-standing economic dominance of the United States.
As of February 2025, China’s gold holdings hit a record high of 2,279.56 tonnes, representing around 5.9% of its total foreign exchange reserves. According to The Kobeissi Letter, China added 160,000 ounces of gold (GC) just last month—marking the fourth straight month of gold accumulation. Over the last two and a half years, the country has accumulated approximately 11 million ounces of gold.
📌 Source: The Kobeissi Letter – Twitter
In comparison, the United States remains the largest holder of gold globally, with an estimated 8,133.46 metric tonnes, according to data from the World Gold Council. Despite China’s aggressive buying spree, the U.S. still holds the upper hand when it comes to traditional asset reserves. However, China’s steady increase in gold acquisitions clearly signals its intent to reduce dependency on the U.S. dollar and enhance its global financial influence.
Bitcoin Reserves: China and the U.S. Compete in Digital Assets
While gold remains a pillar of traditional finance, Bitcoin is emerging as a powerful digital counterpart. Both the U.S. and China hold large amounts of Bitcoin (BTC)—primarily acquired through law enforcement seizures rather than direct purchases.
According to BitBO’s Bitcoin Treasuries report:
- United States holds around 207,189 BTC (~$17.2 billion), mostly seized from operations like Silk Road and the Bitfinex hack.
- China holds approximately 194,000 BTC (~$16.1 billion), largely obtained during the PlusToken Ponzi scheme bust in 2019.
📌 Source: BitBO – Bitcoin Treasuries
Interestingly, despite banning crypto trading and mining, China still maintains a significant stash of Bitcoin, stored in state-controlled accounts. This suggests a cautious but calculated approach to digital assets, reflecting strategic interest rather than full market participation.
Could China Challenge U.S. Economic Supremacy?
China’s growing reserves in both gold and Bitcoin highlight a broader strategy to diversify its asset base and strengthen its global economic position. While the U.S. still leads with the largest holdings in both assets, China’s persistent accumulation shows long-term planning and hedging against global uncertainty.
That said, China hasn’t surpassed the U.S. yet—but the economic chess game is intensifying. Both nations are using traditional and digital reserves as economic insurance, making this race more than just about numbers—it’s about future influence in a multipolar world economy.
Bitcoin vs. Gold: Which Asset Holds the Future?
The comparison between gold and Bitcoin sparks a bigger question—which asset is truly dominant for the future?
As per Companies Market Cap:
- Gold’s market capitalization is roughly $20.335 trillion, maintaining its status as the most trusted store of value, especially during economic turbulence.
- Bitcoin, meanwhile, is trading around $84,312.82 per BTC, with a total market cap of $1.67 trillion, ranking it 8th among global assets.
For Bitcoin to overtake gold, its market cap would need to surpass $18.665 trillion—a massive leap. Yet, BTC’s rapid growth and appeal to younger investors and institutions suggest that it may eventually close this gap.
Final Thoughts: A Shift in Global Power Dynamics?
China’s aggressive asset accumulation strategy is a clear signal: the global financial landscape is evolving fast. While the U.S. currently holds the throne, China’s increasing gold and crypto reserves may eventually reshape the global balance of economic power.
Keep an eye on this financial tug-of-war—it’s more than just numbers; it’s about who will shape the future of global finance.
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