China cuts US Treasury holdings to invest in Bitcoin and gold

China plans to reduce its holdings of US Treasury bonds in favor of investments in Bitcoin and gold, according to a statement given to CNBC by Jay Jacobs, head of thematics and equity ETFs at BlackRock.

Jacobs mentioned that central banks around the world have been moving away from the US dollar over the past decades, and in the past three to four years, Bitcoin and gold have become preferred assets. According to him, Bitcoin behaves differently from US tech stocks and does not rely on economic growth or global stability to maintain its value.

At the end of February, China held US Treasury bonds worth $784.3 billion, according to data published by the US Treasury Department. Additionally, China's gold reserves were valued at approximately $229.6 billion at the end of March, according to the Economic Times. China also holds 194,000 Bitcoin, valued at around $18 billion, according to Bitbo data.

Guy Cecala, executive chairman at Inside Mortgage Finance, told CNBC that a massive sale of US Treasuries by China could strongly impact US financial markets.