30s Summary

BlackRock’s long-term U.S. treasury bond ETF, TLT, has fallen 8% this year while Bitcoin has risen 55%, suggesting a shift in investor risk appetite. U.S. treasuries, historically a safe bet, are being overlooked in favor of Bitcoin, which traded 800 times the value of BlackRock’s TLT at its peak. The rise in Bitcoin’s share of the total cryptocurrency market underscores this trend. Against a backdrop of economic uncertainty due to ongoing inflation, geopolitical conflicts, and a large American budget deficit, Bitcoin is becoming the new safe haven for global investors.

Full Article

Here’s some interesting news for you guys – BlackRock’s long-term U.S. treasury bond ETF, TLT, has dropped by 8% this year. But guess what’s rocketing up instead? Bitcoin! It’s up 55%. That’s right! Bitcoin’s really taking center stage in the crypto world and it’s even giving U.S. Treasuries a run for their money.

Don’t know much about U.S. Treasuries? Well, U.S. Treasuries are seen as a safe bet. They’re backed by the good credit of the American government and are one of the world’s biggest and most liquid markets. Bitcoin’s rising importance seems to indicate that many investors are ready to take more risks for better returns.

Now remember the time BTC hit an all-time high in March, crossing $73,000? During that time, it was trading at a record 800 times the value of BlackRock’s TLT. That’s up from 466 at the time of BTC’s previous peak in November 2021.

With interest rates on the rise since the Covid-19 pandemic, we seem to have entered a period of economic uncertainty. Given that, rates are not likely to drop back to 0% because of ongoing inflation, a nearly $2 trillion American budget deficit, and ongoing conflicts in several parts of the world.

It seems like this lack of incentive for price gains could be why the TLT, which has a whopping $60 billion in total assets, has slipped 7% this year, while bitcoin has zoomed 55% higher. Looks like bitcoin is becoming the new safe haven for global investors in these uncertain times.

And here’s another cool fact – Bitcoin’s rising trend has pushed its share of the total cryptocurrency market capitalization to a new high of 60.56%. So, while crypto investors are becoming more cautious by moving away from riskier currencies to Bitcoin, the rest of the market seems to be following suit.

Just something to ponder on. Stay tuned for more updates in the Bitcoin versus U.S. Treasury saga!