Veteran macro investor Luke Gromen says he likes Bitcoin (BTC) resulting from 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 Timber (FFTT) says the Trump administration is able to enhance demand for US bonds after the president signed an govt order making a Strategic Bitcoin Reserve.
A Bitcoin bull market sometimes will increase demand for dollar-pegged crypto property, and based on Gromen, might finally 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 way to drive demand for T-bills. And clearly, they’ve talked in regards to the Strategic Bitcoin Reserve.
Left unsaid in all of that’s that the upper the Bitcoin value, the extra stablecoin demand, the extra T-bill demand there may be…
I believe the underlying theme of [the] US authorities desperately wants stability sheet and stablecoins and due to this fact Bitcoin might help the US authorities discover stability sheet. I believe that’s completely nonetheless in play.
It’s one of many the reason why we nonetheless like Bitcoin over the intermediate long term.”
Stablecoin issuers resembling 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 via Congress, the STABLE Act of 2025 and the GENIUS Act of 2025, require issuers to put money into T-bills and different real-world property to again their cash.
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