Veteran macro investor Luke Gromen says he likes Bitcoin (BTC) because of its potential to affect demand for US Treasuries.
In a brand new video replace, the founding father of the macroeconomic analysis agency Forest for the Bushes (FFTT) says the Trump administration is able to increase demand for US bonds after the president signed an government order making a Strategic Bitcoin Reserve.
A Bitcoin bull market usually will increase demand for dollar-pegged crypto belongings, and in response to Gromen, might in the end drive demand for US Treasuries.
“Notice that the Trump administration remains to be speaking about placing T-bills (Treasury payments) into stablecoins, utilizing stablecoins as a method to drive demand for T-bills. And clearly, they’ve talked concerning the Strategic Bitcoin Reserve.
Left unsaid in all of that’s that the upper the Bitcoin worth, the extra stablecoin demand, the extra T-bill demand there’s…
I feel the underlying theme of [the] US authorities desperately wants steadiness sheet and stablecoins and due to this fact Bitcoin will help the US authorities discover steadiness sheet. I feel that’s completely nonetheless in play.
It’s one of many explanation why we nonetheless like Bitcoin over the intermediate long term.”
Stablecoin issuers similar to Tether and Circle predominantly depend on Treasury payments to again their cash on a 1:1 foundation. As of December 2024, Tether has invested over $94.47 billion in T-bills to again USDT. In the meantime, Circle owns $22.047 billion price of T-bills as of February of this 12 months to again USDC.
Moreover, two stablecoin payments which might be progressing by Congress, the STABLE Act of 2025 and the GENIUS Act of 2025, require issuers to spend money on T-bills and different real-world belongings to again their cash.
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