Veteran Investor Luke Gromen: Bitcoin Could Drive Demand for US Treasuries
In a recent video update, Luke Gromen, the founder of macroeconomic research firm Forest for the Trees (FFTT), expressed his enthusiasm for Bitcoin (BTC) and its potential to impact the demand for US Treasuries. Gromen highlighted the Trump administration’s strategic move to create a Strategic Bitcoin Reserve, which could play a significant role in boosting the demand for US bonds.
Gromen explained that during a Bitcoin bull market, the demand for dollar-pegged crypto assets increases, leading to a potential surge in demand for US Treasuries. He emphasized the administration’s interest in utilizing stablecoins to drive demand for Treasury bills, noting the correlation between the rising price of Bitcoin, stablecoin demand, and Treasury bill demand.
Stablecoin issuers such as Tether and Circle rely heavily on Treasury bills to back their coins on a 1:1 basis. Tether, for instance, has invested over $94.47 billion in T-bills to back USDT, while Circle holds $22.047 billion worth of Treasury bills to back USDC. This close tie between stablecoins and Treasury bills underscores the potential impact of Bitcoin on the demand for US government debt.
Moreover, Gromen pointed out the progress of two stablecoin bills in Congress, namely the STABLE Act of 2025 and the GENIUS Act of 2025. These bills mandate stablecoin issuers to invest in Treasury bills and other real-world assets to secure their coins, further highlighting the interconnectedness between stablecoins, Bitcoin, and US Treasuries.
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