BTC Approaches $120,000 as MicroStrategy Prepares to Issue $2.1 Billion STRF to Acquire More Bitcoin
Due to Fiscal Concerns, U.S. Treasury Sell-Off Continues, S&P 500 Index Falls for the Third Consecutive Day
The S&P 500 index has recorded a decline for the third consecutive day as concerns over fiscal matters continue to drive a sell-off in U.S. Treasuries. Bitcoin briefly reached a historical high of 111,980 this morning. MicroStrategy, the pioneer of Bitcoin reserve strategy, announced a sales agreement with three financial institutions, preparing to raise up to $2.1 billion through the issuance of preferred stock STRF to acquire more Bitcoin.
Tax Reform Bill Passes Barely, Investors Worry About Debt Risks
Recent turbulence in the U.S. Treasury market reflects growing concerns about the surge in the U.S. debt burden. These worries intensified after Moody’s downgraded the U.S. sovereign credit rating last Friday. Investors are apprehensive that the tax reform bill, which President Trump signed and barely passed in the House, will exacerbate the already inflated U.S. deficit.
For some market observers, the message conveyed by bond investors is clear: unless the U.S. swiftly addresses its fiscal situation, the risks associated with lending to the government will increase, and the borrowing costs for long-term Treasuries will rise further. This will make deficit reduction more challenging and increase the cost of capital for households and businesses.
Thierry Wizman of Macquarie stated, “Even if the U.S. is unable to cut the deficit without leading to default, the massive deficit still signifies more bond supply, which could ultimately lead to inflation as debt is monetized to avoid default.”
Fed’s Waller: Rate Cuts Possible in the Second Half of the Year
Federal Reserve Governor Christopher Waller mentioned on Fox Business News that if the Trump administration stabilizes tariffs on U.S. trading partners around 10%, the Fed might lower interest rates in the second half of 2025.
“If we can bring tariffs down to close to 10% and complete all negotiations before July, then we will be in a good position in the second half of the year.” According to data from CME Group’s FedWatch, investors generally believe that the Fed will start cutting rates as early as September, with a total reduction of only two basis points this year.
Bitcoin Approaches 120K, MicroStrategy Prepares to Issue 2.1 Billion STRF
Bitcoin reached a new high on Bitcoin Pizza Day! On May 22, 2010, Laszlo Hanyecz made the first known real-world Bitcoin purchase, buying two pizzas for 10,000 BTC—then worth about $40. Fifteen years later, the value of those pizzas has soared to $1.1 billion.
This morning, Bitcoin briefly reached a historic high of 111,980, and MicroStrategy announced a sales agreement with three financial institutions, preparing to raise up to $2.1 billion through the issuance of preferred stock STRF.
(Bitcoin Hits Historic High, MicroStrategy Strikes Again! Plans to Raise 2.1 Billion Dollars Through New Stock Issuance)
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be highly volatile. You may lose your entire principal. Please evaluate risks cautiously.
