If Trump succeeds in pushing interest rates down to 1%, it will force global capital to move into Bitcoin.
At 1% rates, traditional investments will stop doing their job.
U.S. Treasuries will offer almost no return. Money-market funds will lose their relevance. Investment-grade credit will no longer compensate investors for inflation or duration risk.
For large allocators - pensions, insurers, RIAs - the question becomes unavoidable:
Why lock capital for years just to earn 1% yield?
Whereas on the other side there's MicroStrategyās preferred shares that are offering 10% yield.
In a low-rate environment, a product offering 10% yield, issued by a transparent and established public company, could easily attract liquidity.
Because the comparison will be simple.
Either hold sovereign debt at 1% or hold preferred shares yielding 10%.
And for institutions managing massive amounts, this is a meaningful difference.
Attractive yield means there'll be more inflows for the Strategy's yield products.
This will give more capital to Saylor for acquiring BTC.
As Bitcoin holdings increase, the balance sheet will strengthen. Improved balance sheet will attract additional capital.
This creates a self-reinforcing capital flow.
The result is not just higher demand for MicroStrategyās instruments but direct and sustained demand for Bitcoin itself, reducing available supply in the open market.
This is why I remain bullish in the long-term as low yields and fresh liquidity will send BTC to new highs.
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