Crypto Investor Predicts Bitcoin Surge Amid Bond Market Shift

Investor Luke Gromen predicts that Bitcoin (BTC) and other risk assets will thrive as sentiment shifts away from US long-term bonds.

In a recent update, Gromen highlights that inflationary pressures are likely to drive capital from the bond market into stocks, gold, and Bitcoin.

He explains that the iShares 20+ Year Treasury Bond exchange-traded fund (TLT) is showing signs of weakness compared to risk assets and inflation hedges.

Gromen notes, “There’s a $130 trillion global bond market that needs to move into a $65 trillion stock market, a $14 trillion gold market, and a $1.3 trillion Bitcoin market to seek safety from inflation.

The charts reflect this shift. S&P 500, Nasdaq, and industrial stocks over TLT look like hockey sticks. Gold and Bitcoin over TLT also show strong upward trends, although Bitcoin’s path is more volatile.”

Gromen believes this trend signals the early stages of a period of secular inflation, where stocks may rise in dollar terms but decline in gold and Bitcoin terms, likening it to an “Argentina with US characteristics.”

Argentina’s stock market index (MERVAL) has soared over 3,779% in the past twenty years due to high inflation, averaging more than 188% annual returns. However, the Argentinian peso has dramatically lost value in dollar terms during the same period.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.