If the safe-haven appeal of the US dollar disappears, US Treasury bonds may face a $1.7 trillion "sell-off" initiated by the EU over Greenland, forcing investors to turn to Bitcoin.
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European leaders are using US Treasury bonds as leverage in the Greenland dispute, a move that could impact US Treasury yields within a month.
Image source: Liam 'Akiba' Wright
#TrumpImposeTariffsOnEurope
European leaders facing a dispute with Washington over Greenland may use US Treasury bonds as leverage.
This will not only test the size of foreign holdings of US Treasury bonds but also the market's absorption capacity and how quickly higher yields will transmit to the dollar, US credit conditions, and cryptocurrency liquidity.
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The Financial Times views the Greenland issue as a potential flashpoint for US-EU tensions, noting that US Treasury bonds could be one of the responses.
This framework focuses on implementation mechanisms and timing, rather than a simple "EU sells X" headline.
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According to the U.S. Treasury Department's International Capital (TIC) Table 5, as of the end of November 2025, foreign investors held $9.355 trillion in U.S. Treasury securities.
#Meme
Of this, $3.922 trillion belonged to foreign official holders. This is a massive pool of funds, and even adjustments to a portion of this portfolio, especially in coordinated or rapid cases, can impact interest rates.
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