Macro investor Luke Gromen believes Bitcoin could surprisingly increase demand for US Treasury bonds. He argues that this connection is linked to the government’s interest in stablecoins and a potential Bitcoin reserve.
The Bitcoin-Treasury Connection
Gromen, founder of Forest for the Trees (FFTT), points to the Trump administration’s exploration of using Treasury bills (T-bills) within stablecoins. This, he says, creates a ripple effect: a higher Bitcoin price leads to increased demand for stablecoins, which in turn boosts the demand for the T-bills used to back them.
“The US government really needs to balance its books,” Gromen explains, “and stablecoins, along with Bitcoin, could be the key.” He sees this as a significant long-term positive for Bitcoin.
Stablecoins and T-Bills: A Growing Relationship
This isn’t just theoretical. Major stablecoin issuers like Tether and Circle already hold massive amounts of T-bills as reserves. Tether held over $94 billion in T-bills as of December 2024, while Circle held over $22 billion as of February 2025. Furthermore, proposed legislation like the STABLE Act and GENIUS Act would require even more T-bill backing for stablecoins.
The Bottom Line
Gromen’s argument suggests an intriguing indirect relationship between Bitcoin’s price and the demand for US Treasuries. While it’s a complex issue, his perspective highlights the potential for unexpected connections in the evolving financial landscape. It’s important to remember that this is just one analyst’s opinion, and investing in cryptocurrencies carries significant risk.