Trump declares the U.S. leads China in the global crypto race, emphasizing America's dominance in digital assets.

The U.S. and China are using Bitcoin as a geopolitical tool, with both superpowers quietly accumulating large reserves.

The U.S. and China are engaged in a global crypto race, with President Donald Trump declaring that the U.S. is "leading" China in the digital asset domain.

“We're leading China in crypto. Good times!” Trump stated on X, reacting to a report by Deepcoin which claimed that the U.S. government currently holds over 198,000 BTC, while China isn't far behind at around 190,000 BTC.

Both superpowers have been quietly accumulating large reserves of Bitcoin as they use the cryptocurrency as a geopolitical tool.

The U.S. is said to have acquired its BTC mainly through forfeiture from major events like the Silk Road bust and the Mt. Gox hack, where the exchange's coins were recovered following a 2014 legal battle.

The U.S. government is also known to be a long-time investor in blockchain technology and cryptocurrencies, aiming to integrate them into the financial system and maintain the dollar's reserve currency status.

On the other hand, China has been focused on infrastructure, and even after cracking down on miners last year, Chinese firms still dominate ASIC hardware production, mining pool software, and backend infrastructure that powers much of Bitcoin's network.

The report by Deepcoin also touched upon the optimism surging in the crypto market following a U.S.-China trade agreement, which saw both superpowers agree to slash tariffs and continue discussions despite heightened tensions in recent months.

The agreement saw the U.S. reduce tariffs on Chinese goods from 145% to 30%, while China decreased tariffs on U.S. goods from 125% to 10%.

As a result, Bitcoin price flew past the $104,000 mark, Ethereum bounced back above $2,500, and even Dogecoin was seen rallying.

The dramatic shift in sentiment came as a result of smoother trade relations, which could lower inflation risk and push the Federal Reserve to ease up on interest rates.

With interest rates dropping, money would be pushed to seek out avenues for growth, and crypto remains one of the boldest bets in the market. The U.S. and China also agreed to keep talking, and this stability, however temporary, is good news for risk assets.