How Bitcoin Could Boost Demand for U.S. Treasuries?

In a recent video update, the founder of macroeconomic research firm Forest for the Trees (FFTT) highlighted Bitcoin’s emerging relationship with dollar-pegged assets and the broader U.S. financial system, following new policy initiatives from the Trump administration.

Strategic Reserve Tied to Treasury Demand

Gromen pointed to President Trump’s executive order establishing a Strategic Bitcoin Reserve as a pivotal move. The administration’s strategy, he says, aims not just to embrace BTC, but also to channel its momentum into greater demand for U.S. Treasury bills (T-bills).

“Note that the Trump administration is still talking about putting T-bills into stablecoins, using stablecoins as a means to drive demand for T-bills,” Gromen explained. “And obviously, they’ve talked about the Strategic Bitcoin Reserve.”

He noted that higher Bitcoin prices tend to fuel greater demand for stablecoins—many of which are backed by T-bills—thus indirectly strengthening demand for U.S. government debt.

BTC Seen as Long-Term Support for U.S. Balance Sheet

According to Gromen, this dynamic highlights a deeper theme: the U.S. government’s urgent need to reinforce its balance sheet. Stablecoins, supported by Treasury holdings, and Bitcoin, driving stablecoin growth, could together provide a crucial financial backstop.

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“I think the underlying theme of [the] US government desperately needs balance sheet and stablecoins and therefore Bitcoin can help the US government find balance sheet,” Gromen said. “I think that is absolutely still in play. It’s one of the reasons why we still like Bitcoin over the intermediate longer term.”

Gromen’s analysis underscores a new era where Bitcoin’s impact may extend beyond being a store of value or speculative asset—potentially becoming a key player in global financial stability.

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