The reason for this proposed sell off by China must be following to the actions of Donald Trump's in his tarrif war with China. Could this be classified as a retaliative measure from the Asian economic giant?.
You don't need to think twice, it's retaliatory against the US. China needs the US to respect it, so it is passing a strong message. Trump is indeed a fool, he thinks everybody would bend the knee to the US, but how? The world made the US what it is today, and the founding fathers carefully built it through mutual respect, alliances, investors' confidence, and political and economic diplomacy.
But Trump is destroying everything in a few months and causing ridicule to the United States.
Such a significant treasury holdings sell for bitcoin can shake the US economy triggering higher rates.
Definitely, it will!