2.3 trillion USD in financial chips about to be unleashed?

The alliance between Europe and the United States is quietly changing. The EU and the UK hold 2.3 trillion USD in U.S. debt, an astonishing asset reserve that has now become the strongest bargaining chip against U.S. pressure. From trade frictions to technological sanctions, Washington's series of tough measures have thoroughly angered Europe, and the once "U.S. led, Europe follows" model is breaking down.

How serious is the U.S.'s real predicament? These numbers make it clear—$36.2 trillion in national debt, with annual interest payments exceeding $880 billion. Moody’s has downgraded the U.S. credit rating, and the halo of U.S. Treasuries as a "safe haven" asset has faded.

What will happen if Europe truly starts selling off? The 10-year U.S. Treasury yield could surge past the 5% critical line again, causing the U.S. government’s borrowing costs to skyrocket, and lending rates for businesses and residents to rise in tandem. The already precarious fiscal situation would worsen. But this sword also wounds itself—European financial institutions’ holdings would shrink significantly, credit contraction could drag down the real economy, and the Federal Reserve is already prepared with liquidity tools to respond.

The most bizarre aspect is that the credibility of U.S. debt is shaking, triggering a full-scale escape. Gold prices have broken through $4,600 per ounce, Bitcoin hit a historic high of $109,500, and capital is accelerating its flight from dollar assets. What does this reflect? The market is beginning to bet on the loosening of the dollar’s credit system.

But can Europe truly unite? Deep divisions within the 27 member states, the reality of security dependence on the U.S., and conflicts of economic interests make unified action difficult. This "sell-off threat" seems more like a strategic warning; the real confrontation will take more time.

Will the crypto market usher in a risk-avoidance wave as a result? Rising geopolitical risks, U.S. debt credit pressure, increased dollar depreciation pressure—all these factors point in one direction: asset allocation is being reconsidered. Bitcoin and other crypto assets, as non-government credit assets, are becoming more attractive. This U.S.-Europe financial game may be catalyzing the next wave of market sentiment shifts.