BRICS De-Dollarization Efforts Could Exacerbate US Debt Crisis, JP Morgan Warns

JP Morgan's latest analysis reveals a troubling trend for the US economy as BRICS nations accelerate their de-dollarization strategies. The bank warns that declining foreign appetite for US Treasury bonds—now held at just 30% of total outstanding debt—could trigger market disruptions within months. This shift coincides with China's yuan now handling over 50% of cross-border transactions, up from 25% in 2020.

Recent US tariff policies appear to have backfired, strengthening BRICS cohesion rather than fracturing it. Brazil's intensified coordination with the bloc and India's suspension of American arms purchases underscore the geopolitical Ripple effects. "The 50% tariffs became a unifying force," observes one market strategist, as dollar reserves globally drop from 70% to 58%.

For cryptocurrency markets, this macroeconomic instability may fuel demand for decentralized assets as hedges against traditional finance volatility. Bitcoin and Ethereum typically see increased institutional interest during periods of currency debasement concerns.