For months, the global spotlight has been locked on the brewing trade tension between the world’s two largest economies – the U.S. and China. Markets held their breath as each headline hinted at escalating tariffs, diplomatic jabs, and mounting uncertainty.
But just as it seemed both sides had finally shaken hands on a long-anticipated trade agreement, President Donald Trump’s post has stirred the pot yet again.
“We’re leading China in crypto”.
Is the timing a coincidence? You decide.
US, China, and Weaponizing Crypto
This isn’t new. While the headlines scream about tariffs and trade deals, the real power struggle between the U.S. and China is playing out on a very different front – Bitcoin. Behind the noise, both nations have been quietly building their reserves, not to profit, but to prepare. This is no longer a bet on crypto markets, but a hedge against the collapse of the global financial order.
The U.S. government currently holds over 198,000 BTC. China isn’t far behind at around 190,000 BTC. But how they got there – and what they’re doing with it – reveals two very different strategies.
China’s focus has been on infrastructure. Even after cracking down on miners, Chinese firms still dominate ASIC hardware production, mining pool software, and backend infrastructure that powers much of Bitcoin’s network. Their approach is to quietly shape the system from within. Influence the rules. Control the rails.
The U.S., on the other hand, plays defense with offense. Most of its BTC wasn’t purchased – it was seized. From Silk Road busts to major hack recoveries, these coins are now being held like digital gold reserves. Quiet, calculated, and likely off-market.
Crypto Cheers as U.S.-China Trade Truce Sparks Market Optimism
But look what happens when everyone plays nice!
After months of tension, the U.S. and China agreed to dial things down. Tariffs on both sides are being slashed – the U.S. from 145% to 30%, and China from 125% to 10%.
And the crypto market noticed. Bitcoin flew past $104,000, Ethereum bounced back above $2,500, and even Dogecoin rallied. The sentiment shift was instant.
Why? Because smoother trade means lower inflation risk – and that could push the Fed to ease up on rates. When interest rates drop, money looks for growth and crypto is still one of the boldest bets out there.
The U.S. and China also agreed to keep the conversation going. That stability, even if temporary, is good news for risk assets.
