Economic uncertainty in the United States has led institutional investors to favor short-term, liquid financial instruments.
This shift has been highlighted by a popular social media post proclaiming, “Sell bonds, buy bitcoin,” which has prompted discussions about the changing interest in bonds. Rising interest rates, recession risks, and fluctuations in global markets are directly influencing investment strategies. As a result, investors are turning both to U.S. Treasury bonds and alternative investment instruments like Bitcoin 
$ 85,632, while corporate interest in spot Bitcoin ETFs has noticeably diminished.
Corporate Investors Seek Safe Havens
In the last two months, over $4.3 billion has exited from spot Bitcoin ETFs listed in the U.S. The capital withdrawals of $3.56 billion in February and $767 million in March reflect a tightening of risk appetite among corporate investors. This trend supports a preference for instruments that can deliver quick returns rather than long-term positions. Concurrently with the fund outflows, there has been an observable increase in the allocation of bonds and similar fixed-income instruments within investor portfolios. As investors seek flexibility in their strategies, the uncertainties in short-term markets have pushed long-term commitments to the back burner. A risk-averse tendency is clearly visible in the movements of large funds.
Strong Demand for Treasury Bonds
Recent auctions held by the U.S. Treasury highlighted a robust demand for short-term bonds. A total of $148 billion was sold, with interest rates reaching 4.225% for three-month bonds and 4.06% for six-month bonds. These rates indicate a growing interest among investors in fixed-income, low-risk instruments. Particularly prevalent in collateral markets, these bonds emerge as a safe haven during periods of economic uncertainty. The rising bid-to-cover ratios also serve as another indicator validating the shift in market direction. Institutions and large investors are striving to establish a more protected portfolio structure against sudden market fluctuations.
Global Risks and Cautious Strategies
Increasing recession probabilities in the U.S. and rising interest rates on Japanese bonds have become two critical factors influencing global investors’ risk perceptions. The recent average of the three-month guide rates released by BofA remains below previous levels, further reinforcing the macroeconomic backdrop behind the shift towards safe havens. Investors are reassessing their positions in light of economic data and geopolitical developments. As strategies become increasingly cautious, short-term, liquid, and low-risk investment instruments are coming to the forefront. Although there are calls on social media to “Sell bonds, buy bitcoin,” security remains a top priority for a broad base of investors.
