One of the biggest beneficiaries of the US dollar decline is Bitcoin.

In fact, with the US dollar now at a three-year low and speculation of Treasury buybacks, Bitcoin is up about $3,500 on the day. 

If the U.S. Treasury were to buy back its own debt, it could inject even more liquidity into the markets and help push Bitcoin well above $100,000 again. 

We also have to consider President Trump’s calls for Federal Reserve Chair Jerome Powell to cut interest rates to support the economy. Plus, we have to consider that Bitcoin much like gold, is a strong hedge against economic uncertainty and inflation thanks to its scarcity.

On top of that, President Trump’s support for Bitcoin and the establishment of a Strategic Bitcoin Reserve has been a strong catalyst. Even better, U.S. states, including Texas, Arizona and North Carolina are also creating plans for their own state-level reserves.

While you can always invest directly in Bitcoin, we can jump into related stocks, like MicroStrategy (MSTR).

With a market cap of $92.2 billion, MicroStrategy provides business intelligence, mobile software and cloud-based services.

But what makes it really exciting is its 528,185 Bitcoin holdings – which is now worth just over $48.2 billion at the moment. That means every time Bitcoin runs, the value of MSTR’s BTC holdings run, which sends shares of MSTR screaming higher.

From its last traded price of $346.49, we’d like to see it retest $450 – which could easily happen if Bitcoin can get back above $100,000.

Sincerely,

Ian Cooper