Renowned macro investor Luke Gromen predicts that Bitcoin (
BTC
) and other risky assets will see a surge in value as sentiment towards long-term US bonds sours in the coming years.
In a recent video update, Gromen explains that due to inflationary pressures, money is likely to move out of the bond market and into stocks, gold, and Bitcoin.
The investor points to the iShares 20+ Year Treasury Bond exchange-traded fund (TLT) as an indicator of weakness against risk assets and inflation hedges.
Gromen emphasizes the massive global bond market, which is approximately $130 trillion, needing to shift into the $65 trillion stock market. He also notes the $14 trillion gold market and the $1.3 trillion Bitcoin market as safe havens against inflation, as reflected in the charts.
In a period of sustained inflation, Gromen expects to see stock prices rise in dollar terms but decrease in terms of gold and Bitcoin, likening it to the situation in Argentina, but with US characteristics.
He cites the remarkable 3,779% increase in the Argentinian stock market index (MERVAL) over the past two decades, with an average annual return of over 188%. However, in dollar terms, the Argentinian peso has essentially collapsed in the same period.
As of the time of writing, Bitcoin is trading at $64,689.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
