Is Bitcoin ready to take over the dollar? Coinbase: If global central banks exchange 10% of their currency for foreign exchange, the market value of BTC will reach 1.2 trillion

The well-known exchange Coinbase's monthly report released on 5/14 points out that as the U.S. fiscal and trade twin deficits worsen and global de-dollarization voices rise, Bitcoin, an asset that is "not restricted by sovereignty and can be self-custodied," is trending towards mainstream and is expected to become a new option in the international reserve system. Coinbase even estimates that if countries globally convert 10% of their foreign exchange reserves to Bitcoin, the total market value could surge to 1.2 trillion dollars.

U.S. Twin Deficit Risks Rise, Dollar Safe-Haven Status Questioned

[The rest of the translation follows the same professional and accurate approach, maintaining the specified translations for specific terms.]

Although the euro is the second-largest reserve currency, the European Central Bank's mechanism restrictions and fiscal fragmentation make it difficult to replace the role of the US dollar. In contrast, BTC, despite its high volatility, possesses characteristics such as digital nativeness and sovereignty-free attributes, potentially becoming a backup in cross-national trade and reserve systems. Coinbase points out: "If 10% of global foreign exchange reserves were to shift to Bitcoin, it would contribute $1.2 trillion to BTC's market value." Countries and the United States are beginning to stockpile coins, with Bitcoin ETFs promoting widespread participation. Coinbase also observes growing strategic reserve interest in Bitcoin: - In March 2025, the White House officially incorporated 198,000 seized BTC into "strategic reserves". - China also holds approximately 190,000 BTC through judicial seizure, though not officially acknowledged. - Countries like Switzerland, Japan, Finland, and Poland are researching potential national asset allocation. Moreover, the emergence of Bitcoin ETFs in 2024 has made market entry easier for retail and institutional investors. By 2025: "Wallet addresses holding over 0.01 Bitcoin have exceeded 14 million, indicating continuous user base expansion, with BTC gradually moving towards mainstream, mass-market store of value." The US dollar's hegemony is loosening, with Bitcoin seizing the opportunity. Coinbase believes that while the dollar's position won't be instantly replaced, this structural change might drive capital towards new store-of-value assets. Gold remains stable, but Bitcoin's self-custodial nature and immunity to geopolitical influences make it more potential as a "digital reserve asset" for the new era. In the next decade, if the reserve asset market grows from $20 trillion to $53 trillion, Bitcoin's potential upside should not be underestimated. By May 2025: "Bitcoin (BTC) and the top 50 cryptocurrencies (COIN50) risk-adjusted returns (Z-score) have returned to the Z-score 2 level, significantly outperforming the S&P 500's Z-score of around 0." "Since Trump's April 2nd Liberation Day, crypto asset returns have recovered faster than traditional stock markets, indicating market funds' renewed preference for high-volatility, high-potential assets." Risk Warning: Cryptocurrency investments carry high risks with potentially extreme price volatility. You may lose your entire principal. Please carefully assess the risks.

Two major trading departments on Wall Street have recently made bold predictions about the US stock market: buying large quantities of the most heavily declined stocks this year to obtain quick short-term profits. As the US stock market index has already erased this year's decline, these companies now state that traders and other speculative buyers who missed the opportunity will seek to catch up before the next round of tariff-induced turbulence strikes again.

Can Wall Street giants turn the tables this time? Or will Chuan Investment Consulting have another surprising move? Let's wait and see!