Epic Gold and Bitcoin Claims from a Famous Investor: He Also Gave a Date!

US Treasury bonds will be abandoned as global reserves by 2030, while the US dollar is again priced at “overvalued” levels, according to Luke Gromen, founder and chairman of Forest for the Trees (FFTT). Gromen says that this will trigger a 3-fold return on the gold price and a 6-fold return on Bitcoin.

New global reserve asset: Yellow metal!

The US Treasury market has been losing its share as the primary global reserve asset since 2014. Because global central banks sold a net worth of $400 billion worth of Treasury bonds. Additionally, it purchased a net worth of $600 billion worth of gold. Gromen said, “Global central banks stopped buying US Treasury bonds on a net basis ten years ago. Additionally, US debt has not stopped growing. “There is a widening gap between the supply of US Treasuries and the demand from global central banks.” says.

cryptokoin.com As you follow from , gold reached many new record levels this year. Gromen says it’s seeing solid benefits, up 12.5% ​​year-to-date. He also states that it will continue to rise towards 2030. In this context, Gromen makes the following statement:

Everything in the macro tells you that gold will continue to rise. You see BRICS moving towards gold. You see Yellen throwing away 40 years of economic orthodoxy. You see the Fed saying that we will not allow Treasury market dysfunction by adding liquidity as needed. The alternative to Treasury bonds as a global reserve asset is gold. For central banks, Treasury bonds are no longer risk-free instruments. If you do something that doesn’t sit well with the US government, they will confiscate the Treasury securities. They did this to Russia and others, which opened eyes.

Gold price assumption: It needs to triple because…

Markets are sensing a shift away from Treasuries. Therefore, this increases gold prices. Gromen said, “Markets are reflexively beginning to understand that the dysfunction in the Treasury market will not be allowed to continue. “In this case, the $130 trillion global bond market is gradually being squeezed into the $65 trillion US dollar equity market, the approximately $14 trillion gold market, and the $1.4 trillion Bitcoin market,” he says.

To put gold’s upcoming multi-year rally into perspective, Gromen says gold’s rally is just getting started now. In this context, Gromen says, “To reflect the reversion to the mean of being a primary reserve asset, its price needs to be an order of magnitude higher.” To get a more precise view, Gromen looks at the ratio of the market value of U.S. official gold to foreign-held Treasuries. Based on this, he comes to the following conclusion:

When the USSR collapsed in 1989, this rate was 20%. This rate was 134% in 1979 and 1980, when we experienced the dollar crisis. As of today, this rate is 7%. So gold would have to triple to get back to the bottom of this long range, where we were last in 1989 when we had a great power rivalry.

Bitcoin hypothesis: If gold increases 3 times, BTC increases 6 times!

Bitcoin also plays a key role in this new reserve asset environment. Gromen said, “Bitcoin is a power-neutral reserve asset for people. In this respect, it is a tool like digital gold. More dollar liquidity means a weaker dollar. This is also good for Bitcoin. It does many of the things that gold is arguably more suitable for than gold. But it still has much more volatility and is a much smaller market.” says.

Gromen does not rule out a 6x return for Bitcoin over the next six years as investors sell bonds and buy appreciated assets. In this context, “The things that hold their value are US stocks, gold and Bitcoin.” says. In this scenario, according to Gromen, Bitcoin will outperform gold due to higher volatility. Gromen said, “I wouldn’t be surprised if gold increases 3 times and Bitcoin increases 6 times. “They can both win,” he says.