Bitcoin Will Soak Up Trillions From China And | Crypto News
Pantera Capital founder Dan Morehead believes a geopolitical shift in reserve management will push adversaries of the United States into Bitcoin at huge scale, calling it “inevitable” that China and Russia ultimately maintain “trillions of dollars” value of the asset.
Speaking on Blockworks’ Empire podcast launched this week, the billionaire framed the prediction as half of a longer-term rotation in global reserve belongings and a response to sanction risk embedded in dollar-denominated holdings. “I think it’ll take a decade or two,” Morehead said, including that the first movers will doubtless embrace US-aligned Gulf states before “the big one” arrives with international locations “antagonistic to the United States, like China or Russia.”
Why Russia And China Will Adopt Bitcoin
Morehead anchored his argument in the historic cadence of reserve transitions and the vulnerability of holding claims on a rival’s financial system. “You gotta remember, the reserve currency’s changed every 80 or 100 years… no one’s ever really lasted for more than, let’s call it 100, 110 years,” he said.
While calling it “inconceivable that the dollar will be supplanted” in a single day, he warned that international locations with large US Treasury positions face concentrated political risk. Citing China’s portfolio, he argued: “It’s really pretty crazy to have your entire country’s life savings in an asset that your potential adversary could literally just cancel.” In his view, that calculus makes it “inevitable” that such international locations “will have started to save in Bitcoin and other cryptocurrencies” within the next decade.
The provocation lands amid measurable modifications in how major economies maintain US debt. Official Treasury data for July 2025 show China’s reported Treasury holdings at $730.7 billion, the bottom since 2008 and down markedly over the past decade, a decline often read as gradual diversification of reserves moderately than abrupt abandonment.
JUST IN: BILLIONAIRE DAN MOREHEAD JUST SAID IT’S “INEVITABLE” CHINA AND RUSSIA WILL HOLD TRILLIONS OF DOLLARS IN #BITCOIN
NATION STATE GAME THEORY. IT’S HERE pic.twitter.com/tOQO9tHYNi
— The Bitcoin Historian (@pete_rizzo_) September 23, 2025
Japan stays the most important holder at roughly $1.15 trillion, with the United Kingdom close to $900 billion. The broader pool of foreign-held Treasuries nonetheless hit a file in July. These figures illustrate that while the greenback system stays deep and liquid, China’s share is slipping at the margin—the precise dynamic Morehead argues might speed up various reserve methods over time.
Morehead’s timeline also intersects with a flurry of coverage proposals that, if enacted, would normalize sovereign Bitcoin publicity. In March, US President Donald Trump signed an government order establishing a Strategic Bitcoin Reserve and a national digital asset stockpile. Wyoming legislators individually superior a invoice to allow restricted Bitcoin investments—capped at 3%—within sure state funds, an incremental step toward institutional reserve management in digital belongings at the state stage.
Outside the US, Gulf governments are already experimenting at the sides of sovereign crypto publicity—another plank in Morehead’s thesis. The United Arab Emirates’ has launched state-backed mining initiatives and disclosures suggesting a number of thousand BTC amassed on the steadiness sheet via those operations.
Skeptics will notice that shifting “trillions” of {dollars} into Bitcoin would require not only coverage shifts but also market construction succesful of absorbing sustained sovereign demand without disorderly volatility. Liquidity depth has improved with US spot ETF adoption and growing derivatives markets, yet Bitcoin’s free float, custody frameworks, and cross-border cost rails still face periodic stress.
Morehead, however, situates the thesis in a long arc moderately than a short-term commerce. “I don’t think it’s gonna happen overnight,” he said, emphasizing a horizon of “a decade or two” and a phased path in which US-aligned adopters pave the way in which for politically non-aligned states that prize censorship resistance and sanction insulation.
For China and Russia particularly, the impetus could be as a lot strategic as financial. China’s willingness to chip away at Treasuries aligns with its broader push to diversify reserves into gold and other belongings, while Russia’s post-2014 and 2022 sanctions expertise has already pushed a dramatic reconfiguration of its reserve composition.
At press time, Bitcoin traded at $112,639.
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