The wave of global central banks reducing holdings of US Treasuries and increasing gold allocations is coming, but does this really mean the dollar is heading towards decline?

From a different perspective, this seemingly "de-dollarization" movement may actually be the smartest self-rescue attempt by the dollar. As the world's reserve currency for the past 70 years, the dollar has long been trapped in the old dilemma of traditional reserve currencies—constantly running deficits to maintain international liquidity, ultimately leading to industrial hollowing out and increased wealth disparity.

Now, as countries gradually reduce their US Treasury holdings and international capital inflows slow down, it appears to be a crisis, but in reality, it signals the dollar actively entering a depreciation cycle. Once the dollar exchange rate adjusts to a reasonable level, a chain reaction will occur:

Firstly, the price competitiveness of US export goods will significantly improve, and Made in USA products are expected to regain global market share. Secondly, dollar depreciation will attract manufacturing to accelerate its return to the US, directly boosting middle-class employment and local industry development. Thirdly, the economic focus will shift from virtual assets to real industries, greatly enhancing supply chain resilience and security.

In the short term, markets will experience turbulence and pain, but from a long-term perspective, this is more like a modern structural reform—using the global trend of de-dollarization to complete the transition of the US economy from virtual to real.

The valuation of digital assets like BTC, ETH, and others will also be re-priced accordingly. How you view this wave of adjustments during the reshaping of the dollar system will directly influence your investment strategy.