Investors are increasingly turning to Bitcoin instead of traditional sovereign bonds, such as US Treasuries. Historically regarded as low-risk investments with steady returns, bonds are losing ground to Bitcoin, which is viewed as a hedge against inflation and government mismanagement. This shift is influenced by the Federal Reserve’s monetary policy, which affects money supply, inflation, and interest rates. In 2025, Bitcoin significantly outperformed other assets, showing a rise of 375.5% over three years, compared to much lower gains in the stock market and gold. The approval of Bitcoin spot ETFs by the US SEC in January 2024 has further solidified Bitcoin's investment appeal as it allows greater access to retail investors, with total assets reaching $132.5 billion. Notable investors like Larry Fink and Stanley Druckenmiller are supportive of this shift, betting on Bitcoin's advantages in a volatile economic environment. Bitcoin's limited supply adds to its allure compared to virtually limitless sovereign bonds. These dynamics illustrate why Bitcoin is rapidly being integrated into investment strategies that traditionally favored bonds.

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