Charles Schwab quantifies Bitcoin price impact from US Senate bill

Charles Schwab has put a number on what it would take for Bitcoin to hold its own against one of the most boring, reliable corners of the bond market. The answer: about $154,000 per coin. The brokerage giant modeled Bitcoin’s price sensitivity to a US Senate bill tied to a $5 billion market, concluding that the cryptocurrency would need to reach approximately $154,000 to match the returns offered by 30-year Treasury Inflation-Protected Securities, which currently yield 2.98%. The Schwab framework TIPS are Treasury bonds that adjust their principal based on inflation. The 30-year variety currently yields 2.98%, which means investors are locking in a real return (above inflation) of just under 3% for three decades. Schwab’s model essentially asks: at what price does holding Bitcoin deliver equivalent risk-adjusted value compared to parking money in TIPS? The answer they arrived at is $154,000. The $5 billion figure attached to the Senate bill adds another layer. While the specific legislation hasn’t been publicly identified in Schwab’s analysis, the number appears to represent either projected capital inflows or the estimated economic impact of the regulatory changes under considerat...