While world markets continue to debate when the US Federal Reserve (Fed) will start cutting interest rates, macro analyst and investor Luke Gromen said that liquidity is now shifting to Bitcoin, gold and shares.

“Confidence in the US has declined”

Speaking to Kitco News, a digital media channel, Gromen argued that US bonds are no longer hedging assets:

“Treasuries for central banks are no longer risk-free instruments. If you do something that the United States government doesn’t like, they will take your Treasuries full stop. They’ve done it to Russia. They’ve done it to others.”

“Bonds are the losers at the table”

Gromen said that many countries will also start to remove the bonds they hold over time:

“The $130 trillion bond market is the sucker at the card table, and it’s going to figure that out. As it figures that out, it’s going to sell bonds [and] buy me something that holds value. That’s something that holds value will be $65 trillion in US stocks right now, $14 trillion of gold right now [and] $1.4 trillion of Bitcoin right now.”