15-6-2025 – Bitcoin’s allure as a formidable store of value continues to captivate investors, with its total addressable market extending far beyond the $16 trillion gold sector to encompass the $30 trillion US Treasury market, according to Hunter Horsley, chief executive of Bitwise, a leading digital asset investment firm. In a statement issued on Friday, Horsley emphasised that Bitcoin’s potential transcends traditional gold investments, positioning it as a compelling alternative for those seeking refuge in the vast pool of US Treasuries held by institutions and individual bondholders.
El-Erian says treasuries no longer reflect market safety flows
This perspective comes as a response to economist Mohamed El-Erian’s recent observation that US Treasury flows no longer serve as a reliable gauge of investors’ flight to safety. Instead, El-Erian urged analysts to monitor movements in gold and silver—long-standing bulwarks against currency inflation—for insights into where capital is seeking shelter from market volatility. Bitcoin, with its gold-like attributes, is increasingly viewed as a hedge against macroeconomic shocks, geopolitical unrest, and downturns in riskier markets, offering a novel savings technology for those wary of centralised fiat systems.
US deficit woes deepen under Trump’s proposed $2.5 trillion spending bill
The cryptocurrency’s rise is further propelled by mounting concerns over unchecked government spending and geopolitical instability, which erode confidence in traditional currencies. In the United States, President Trump’s proposed “Big Beautiful Bill” is projected to inflate the national deficit by as much as $2.5 trillion, adding pressure to an already staggering $37 trillion debt pile. Critics, including Elon Musk, former head of the Department of Government Efficiency (DOGE), have sounded alarms over the bill’s sustainability, warning that it threatens the nation’s long-term fiscal stability.
Bond market reacts to tariffs and ballooning debt with sell-off
The bond market, rattled by Trump’s trade tariffs and escalating debt levels, witnessed a sharp sell-off in April 2025, as investors divested from US government securities. This triggered a spike in bond yields, with markets demanding higher returns to offset the perceived risks of lending to a heavily indebted government.
Saifedean Ammous, author of The Bitcoin Standard, noted on 23 April in a post on X that the US fiscal outlook is precarious, and Trump’s proposed remedies have only heightened bond market jitters. “It will take significant measures to restore calm,” Ammous warned, underscoring the deepening unease driving investors towards assets like Bitcoin to safeguard their wealth from inflation and counterparty risks inherent in fiat systems.
