Investors are increasingly considering Bitcoin over traditional sovereign bonds such as US Treasurys due to various economic factors. Historically, bonds were preferred for their minimal risk and stable returns. However, the US Federal Reserve's monetary policies, including interest rate fluctuations and market confidence in fiat currencies, have caused some to reevaluate their investment strategies. Bitcoin's significant gains, outperforming major assets like the S&P 500 and gold over a three-year period, contribute to its attractiveness. As of mid-2025, Bitcoin's price peaked at over $112,000, while major investors see it as a hedge against inflation. Additionally, a recent SEC approval of multiple Bitcoin spot ETFs, which have seen massive inflows, further solidifies Bitcoin's place in modern portfolios. The efficient risk-adjusted returns of Bitcoin compared to lower-risk US Treasury bonds make it a compelling alternative as its fixed supply and easy accessibility reshape traditional investment paradigms.

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