Global central banks are shifting away from US debt instruments, signaling a potentially significant shift in the global financial landscape. This trend, fueled by rising gold holdings and reduced Treasury holdings, is mirroring conditions seen during Bitcoin’s 2020 bull run, analysts suggest. Bitcoin (BTC) could be poised for a major price breakout. Recent data reveals: US Treasury funds saw $19 billion in inflows last week, the highest since March 2023, while foreign central banks reduced their exposure to US Treasurys to 23% of outstanding debt—the lowest point in 22 years. Meanwhile, gold reserves within central bank portfolios have hit an all-time high at 18%, a notable increase from previous years. This shift toward gold signifies a gradual de-dollarization trend as central banks seek alternative assets. A historical parallel between Bitcoin’s 2020 surge and this current market movement is evident. During the pandemic, similar economic patterns fueled Bitcoin’s rise, with US Treasury inflows coinciding with its price increase from $9,000 to $60,000. Similar dynamics are unfolding now as institutional demand for Bitcoin has become dominant in the recent rally, which pushed BTC above $94,000. Despite a lack of retail-driven momentum, corporate treasuries, asset managers, and even sovereign entities have been driving demand for this digital asset. However, risks remain: a potential global recession could potentially derail Bitcoin’s growth if investors turn to traditional safe haven assets like US Treasurys instead. The coming quarters will be crucial for determining the future of Bitcoin’s upward momentum as liquidity conditions and investor sentiment continue to play a key role.