Bitcoin's Addressable Market Expands to $30 Trillion U.S. Treasury Market

Bitwise CEO Hunter Horsley has asserted that Bitcoin's potential as a store-of-value asset extends beyond the gold market, now encompassing the $30 trillion U.S. Treasury market. Traditionally viewed as a safe haven by institutions and bondholders, the U.S. Treasury market is increasingly being seen as part of Bitcoin’s total addressable market. Horsley's comments come at a time when mounting U.S. debt and fiscal instability are driving investor interest toward crypto alternatives.

Horsley's statement was made in response to economist Mohamed El-Erian, who suggested that U.S. Treasury flows are no longer reliable indicators of flight-to-safety behavior. Instead, El-Erian pointed to gold and silver as new barometers. However, Horsley and other crypto proponents argue that Bitcoin should be included in this category, offering protection against inflation, geopolitical instability, and systemic risk.

Recent macroeconomic conditions support this shift. Soaring government debt, fiscal deficits, and monetary uncertainty are eroding trust in fiat-based financial instruments. In the U.S., the national deficit is expected to increase by roughly $2.5 trillion, pushing the total debt load toward $37 trillion. Critics, including tech entrepreneur Elon Musk and former government officials, have expressed concerns over the sustainability of current spending levels.

In April 2025, a sharp bond market correction occurred as investors reacted to new tariffs and swelling deficits by selling off U.S. government securities. Amid this flight from bonds, Bitcoin has seen renewed interest from both retail and institutional investors seeking shelter in a digitally scarce asset that isn’t tied to government policy. The narrative around Bitcoin is evolving; it is no longer just a hedge against inflation or an alternative to gold but is positioning itself as a long-term counterweight to sovereign debt risk.

Asia’s wealthiest investors are also shifting away from the U.S. dollar and increasingly turning to Bitcoin, gold, and Chinese assets amid rising geopolitical tensions and market volatility. In May, UBS executive Amy Lo reported that ultra-rich clients now allocate over 15% of their portfolios to crypto and precious metals. With Asia’s wealth management market expected to grow significantly, this trend signals a major realignment in global capital flows. A 2024 Aspen Digital study found that 76% of Asia’s family offices and high-net-worth individuals now hold digital assets, up from 58% in 2022. Many have doubled their crypto allocations to over 10% of their portfolios, treating Bitcoin as a hedge similar to gold during past financial crises.