Massive Shift Expected: Trillions to Move from Bonds to Bitcoin, Gold, and Stocks
Veteran macro investor Luke Gromen predicts a massive shift of trillions of dollars away from the US bond market into assets like Bitcoin (BTC), gold, and stocks.
In a recent Kitco NEWS interview, Gromen expressed concerns over the $130 trillion bond market, noting a growing apprehension among central banks worldwide about holding US Treasuries due to geopolitical risks.
He cited instances where the US government seized Treasuries belonging to countries like Russia, underscoring that Treasuries are no longer seen as risk-free.
Gromen anticipates that Treasury investors will increasingly divest from bonds in favor of assets perceived to offer higher growth potential.
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He argues that with the US government’s debt burden limiting its ability to raise interest rates, investors will find more value in stocks, Bitcoin, and gold.
According to him, the bond market’s realization of its vulnerabilities will drive a cycle of selling bonds and acquiring alternative assets, which could accelerate as conditions worsen.
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.
