Bitwise CEO: Bitcoins Potential to Absorb $30 Trillion in U.S. Treasury Bonds

The overall target value of Bitcoin encompasses the gold and U.S. Treasury bond markets, which are valued at $16 trillion and $30 trillion, respectively, according to Bitwise CEO Hunter Horsley.

«Bitcoin’s potential extends beyond just gold; it represents more than $30 trillion that can be utilized as a store of value in Treasury bonds,» he stated.

Horsley was responding to an earlier post by economist Mohamed El-Erian, who cautioned that investments flowing into U.S. Treasury bonds are no longer a reliable indicator of investors seeking safe haven assets.

In El-Erian’s view, market participants should observe the influx of funds into gold and silver—traditional hedges against currency inflation—to gauge where investors are looking for safety.

He emphasized that Treasury bonds have ceased to be a «safe haven,» as their yields have barely budged since Israel’s attack on Iran.

The last significant sell-off of U.S. government securities occurred in April following President Donald Trump’s announcement of trade tariffs on China.

This sell-off resulted in a sharp increase in bond yields, as investors demanded higher interest rates to compensate for the risks associated with lending to the government.

Additionally, in May, Bitwise’s Head of Research for Europe, Andre Dragosh, linked the surge in Bitcoin to the crisis in the Japanese market.