Bitcoin Stands Above Bonds in Seismic Shift of Safe-Haven Assets

By Juan Villaverde

Due to the geopolitical drama drumming up volatility across markets, investors are turning their attention to safe havens. This week’s top choice? Gold.

After all, gold’s status as a safe-haven asset is well established. But usually, another asset moves to the same beat, beefing up in times of trouble. However, while my Crypto Timing Model is signaling that gold is prepping for a stellar performance, U.S. Treasurys are out of tune.

And that’s a sound that’s catching my attention.

Sure, there are whispers circulating the economic corridors suggesting that the low unemployment rates and strong economic performance are why Treasurys are selling off.

But I’m not buying it. Especially because when gold is on the rise, Treasurys should be right behind it.

To me, it seems like Uncle Sam may have overreached a bit, and the bond market’s giving some not-so-subtle hints ... like surging to heights not seen since 2007.

Kinda undermines Treasury Secretary Janet Yellen’s confidence when she stated the U.S. could handle a bit of rough and tumble in the markets due to the wars in the Mideast and Ukraine, doesn’t it?

And with Treasurys getting left behind, it’s only a matter of time before another safe-haven asset takes its place as gold’s wingman.

As we crypto enthusiasts suspected, this is a perfect opportunity for a decentralized, trustless asset class that exists outside the traditional financial system. Specifically, the OG crypto, Bitcoin’s (BTC, “A-”), has been known by those within the cryptosphere as a safe-haven asset for a while as BTC’s correlation to gold, while imperfect, is notable.

Now, even pillars of TradFi are looking to crypto. BlackRock (BLK) CEO Larry Fink attributed Bitcoinrecent uptick to its growing reputation as a reliable safe haven in broader circles.

Throw in the anticipation over the Securities and Exchange Commission’s impending approval of a spot Bitcoin ETF … and the massive wave of adoption that is likely to follow … and you can see why my Crypto Timing Model is predicting a strong 2024 for crypto markets.

But that’s just the first of several macroeconomic forces that will converge in the new year. And when they do, I anticipate fireworks in the cryptosphere.

I recently put together a video breaking down all the factors I foresee pushing crypto higher and how smart investors can take steps to prepare their portfolio now for when that happens.

Today is the last day it’ll be online, though. So, watch it now … before it’s too late.

To put it plainly: if you’re pinning all your hopes on sovereign debt being the safe haven du jour, perhaps it’s time for a strategic rethink. The landscape’s shifting, and it would be wise to keep up. Otherwise, you risk being left behind.

Get ready to hear the term “counterparty risk” in the year to come. Escaping that will be the top reason you’ll see capital shifting from sovereign debt to hard assets like Bitcoin and gold.

I don’t know about you, but I’m glad to be leveraged to Bitcoin and select altcoins now, ahead of the exodus.

Best,

Juan