Chief Economic Advisor of financial services company Allianz: Bitcoin is becoming a safe-haven asset

ChainCatcher news, Allianz's Chief Economic Advisor Mohamed El-Erian stated that Bitcoin (BTC) is becoming a safe-haven asset, while U.S. Treasuries have lost their appeal following the Israel-Hamas conflict. El-Erian told CNBC on Tuesday, "People are talking about Bitcoin and stocks becoming 'safe assets' because they have lost confidence in Treasuries as a safe asset due to interest rate risks."

Investors have traditionally viewed government bonds, especially those issued by the U.S. Treasury, as a safe haven, but recently Treasuries have not lived up to that reputation. The yield on the U.S. 10-year Treasury is at 4.9%, which is at least 10 basis points higher than the yield on the day before the Hamas attack on Israel on October 7. In other words, the price of the 10-year Treasury has fallen, indicating that investors are seeking safety in other assets.