In the near future, macro investor Luke Gromen predicts that Bitcoin (
BTC
) and risky assets will see gains as sentiment towards long-term US bonds sours.
In a recent video update, Gromen suggests that due to inflationary pressures, capital is likely to shift from the bond market to stocks, gold, and Bitcoin.
The investor points out that the iShares 20+ Year Treasury Bond exchange-traded fund (TLT) is showing weakness against risk assets and inflation hedges.
“There’s a $130 trillion global bond market that will need to run into a $65 trillion stock market which I think is happening. [There’s a] $14 trillion gold market and a $1.3 trillion Bitcoin market for safety from that inflation. And you’re seeing that in the charts. If you look at the S&P 500 over the TLT – the long bond ETF – it looks like a hockey stick. Nasdaq over TLT: hockey stick. Industrials over TLT: hockey stick. Gold over TLT, all together now: hockey stick. Bitcoin over TLT: hockey stick but very volatile hockey stick. So my view is in the secular inflation that we are in the early days of, you’ll see stocks up in dollar terms [but] down in gold and Bitcoin terms. Basically Argentina with US characteristics.”
Due to severe inflation, the Argentinian stock market index (MERVAL) has surged over 3,779% in the last two decades, averaging over 188% returns each year.


Source: TradingEconomics
However, in dollar terms, the Argentinian peso has essentially plummeted to zero in the same period.


Source: TradingEconomics
At 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.