PRESIDENT TRUMP IS PUSHING FOR A 1% INTEREST RATE — AND THE MARKET IS UNDERESTIMATING THE CONSEQUENCES.
If interest rates are driven down to 1%, the impact on global capital allocation could be massive — especially for Bitcoin.
At 1% rates, traditional investments lose their appeal:
• U.S. Treasuries offer minimal real returns
• Money market funds become unattractive
• Investment-grade bonds fail to compensate for inflation and duration risk
For large institutions like pensions, insurers, and RIAs, a critical question emerges:
Why lock capital for years just to earn 1%?
Now compare that with MicroStrategy’s preferred shares offering yields around 10%.
In a low-rate environment, a double-digit yield from a well-known, publicly traded, and transparent company becomes extremely attractive. The choice becomes simple:
• Sovereign debt at 1%
• Preferred shares at 10%
For institutions managing billions, that yield gap matters.
Higher yields will naturally attract more capital into Strategy’s yield products. More inflows mean more capital available for Michael Saylor to accumulate Bitcoin.
As Bitcoin holdings grow, MicroStrategy’s balance sheet strengthens. A stronger balance sheet attracts even more capital — creating a powerful feedback loop.
The outcome isn’t just increased demand for MicroStrategy’s instruments, but direct, sustained demand for Bitcoin, tightening available supply in the market.
This is why I remain strongly bullish long-term.
Low interest rates plus fresh liquidity could push #BTC to new highs — potentially far beyond current expectations. 🚀
