Bitwise CEO: Bitcoin could absorb $30 trillion of the U.S. Treasury bond market

According to Hunter Horsley – CEO of the digital asset investment company Bitwise, the total market size that Bitcoin can access is not limited to gold with a value of 16 trillion dollars, but also includes the US government bond market worth over 30 trillion dollars – traditional store of value channels for both individual and institutional investors.

Hunter Horsley – CEO Bitwise "The opportunity for Bitcoin is not just gold, but also over 30 trillion dollars being stored as government bonds," the CEO wrote on Friday.

Horsley made this statement in response to a previous post by economist Mohamed El-Erian, in which he warned that the flow of money into U.S. government bonds is no longer a reliable indicator of investor safe-haven trends.

Gold is once again approaching the ATH of $3,500 an ounce | Source: TradingViewInstead, the economist said that analysts should monitor the flow of money into gold and silver — traditional assets to hedge against currency inflation — to identify where investors are looking to take safe haven from market risks.

In addition, Bitcoin continues to attract the attention of investors as it is increasingly seen as a substitute savings technology and a store of value asset similar to gold, with the ability to hedge against geopolitical risks, macroeconomic shocks, and downturns in high-risk markets.

Geopolitical tensions and rampant government spending are driving the adoption of Bitcoin

Geopolitical tensions and government spending beyond control are driving the adoption of Bitcoin, as market participants seek to protect the value of their savings against the corrosive effects of inflation and the ever-present counterparty risks associated with state-managed fiat currencies.

In America, President Trump's "Big Beautiful Bill" is estimated to add up to 2.5 trillion dollars to the budget deficit — pushing the total national debt close to 37 trillion dollars.

Critics of this bill, including Elon Musk — former Director of the Office of Government Efficiency (DOGE) argue that the current budget is unsustainable and will continue to erode America's long-term fiscal situation, completely contrary to President Trump's stated goals.

In April 2025, the bond market reacted to the macroeconomic instability caused by Trump's trade tariffs and the rising national debt with a strong sell-off, as investors rushed to exit U.S. government bonds.

The yield on 10-year Treasury bonds | Source: TradingViewThe sell-off has caused yields to soar, as investors seek higher interest rates to compensate for increased risks when lending money to the government America.

"The fiscal situation in America is unstable and Trump's ideas to improve the situation only scare the bond market. Something really serious will be needed to stabilize the market again," wrote the author of The Bitcoin Standard, Saifedean Ammous, in a post on X on April 23.

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