Bitcoin's Potential to Outperform Gold and Compete in the $30 Trillion Treasury Market

Bitcoin is increasingly being viewed not only as an alternative to gold but also as a contender in the vast U.S. Treasury and traditional savings market, according to insights from a prominent digital asset executive.

As reported by Cointelegraph on June 14, Hunter Horsley, CEO of the digital asset investment firm Bitwise, underlined Bitcoin's expanding competitive scope. "The market Bitcoin is competing in encompasses the $23 trillion gold market and the $30 trillion U.S. Treasury market," remarked Horsley.

Horsley further explained, "Bitcoin’s opportunity goes beyond just replacing gold. It could become a new store of value, extending into the over $30 trillion Treasury market." His comments were directed at a recent analysis by economist Mohamed El-Erian about changing capital flows within U.S. Treasuries.

Bitcoin's Expanding Role in the Market

Referencing El-Erian, Horsley noted that U.S. Treasuries no longer hold the same weight as the go-to safe-haven for risk-averse investors. With mounting economic and geopolitical uncertainties, investors are increasingly turning to traditional inflation hedges like gold and silver.

Horsley reiterated this in a public statement on Twitter:

“The opportunity for Bitcoin isn’t just gold. It’s the $30T+ using Treasuries as a store of value." — Hunter Horsley (@HHorsley) June 13, 2025

El-Erian had previously indicated that Treasuries might be losing their luster as the primary safety indicator, reinforcing a shift in investment strategies.

Geopolitical Strains and Inflation Fears Drive Bitcoin Interest

Bitcoin's attraction is intensifying amid rising geopolitical tensions and substantial government spending. Investors are increasingly turning to Bitcoin to hedge against inflation and mitigate credit risks that come with fiat currencies controlled by central authorities.

For instance, under the previous administration of President Trump, the introduction of the "Big Beautiful Bill" added an estimated $2.5 trillion to deficit spending, pushing the U.S. national debt closer to the $37 trillion mark. Critics argue such fiscal policies are unsustainable and may jeopardize long-term financial stability.

Elon Musk has notably joined these criticisms, pointing out vulnerabilities in current fiscal policies.

Rising Bond Yields Reflect Uncertainty

The increasing U.S. debt and policy measures have also resulted in significant volatility in the U.S. Treasury market. In April, following the announcement of new tariff policies and the swelling national debt, Treasuries saw a sharp sell-off. This led bond yields to rise, underlining growing concerns over lending to the U.S. government. Investors required higher returns to counter the added risks.

This mix of factors is creating a conducive environment for alternative assets like Bitcoin. As traditional safe havens such as Treasuries and gold face challenges due to fiscal pressure and geopolitical risks, Bitcoin is gaining recognition as an innovative store of value and a hedge against systemic risks.