- Firms are using low-interest loans to acquire Bitcoin, locking in value while the dollar continues to weaken against inflationary pressures.
- This capital shift from bonds to Bitcoin is increasing stress on the bond market and may trigger a sharp rise in yields.
- A collapse in the bond market could challenge the U.S. dollar’s role, with stablecoins possibly replacing it as a reference point.
Popular Bitcoin advocate Max Keiser has once again attracted attention with a viral post on social platform X. He claimed that firms such as MicroStrategy are using Bitcoin accumulation as a tool to exploit weaknesses in the U.S. financial system. Keiser described this trend as a “speculative attack” on the U.S. dollar. He argued that this is only possible because central banks maintain artificially low interest rates through mechanisms like quantitative easing and yield curve control.
Keiser emphasized that current monetary policy enables companies to borrow dollars at very low rates and use those funds to buy Bitcoin. He pointed to MicroStrategy’s approach, led by Michael Saylor, as a clear example. Saylor has stated that true inflation, including the rise in asset prices, is close to 15%. Under typical economic conditions, such inflation would trigger higher interest rates. However, Keiser believes central banks have kept borrowing costs low to shield financial institutions from losses.
Mounting Pressure on the U.S. Bond Market
According to Keiser, this environment creates a significant imbalance. As companies increase Bitcoin holdings with borrowed dollars, the value of the debt erodes due to inflation, while Bitcoin retains long-term potential. He warns that this shift is applying growing pressure on the U.S. bond market, which is still operating under outdated financial assumptions. The movement of capital from bonds to Bitcoin could cause yields to spike rapidly, potentially by 50% or more.
Keiser suggests that if this trend continues, it could destabilize the existing financial system. He believes the strain on bond markets might eventually lead to a collapse in bond prices and a surge in borrowing costs. As these mechanisms break down, he anticipates the U.S. dollar could lose its function as a reliable global currency. While dollar-backed stablecoins may persist, Keiser predicts they would lose their link to central banking and sovereign support.
Meanwhile, companies with significant Bitcoin reserves, such as MicroStrategy, could potentially benefit if such a financial reset occurs. Their positions in Bitcoin may insulate them from the fallout, positioning them favorably in a new monetary landscape.
