U.S. Treasury rates fall, Bitcoin set to start another rally
Recently, the yield of ten-year U.S. Treasury bonds has fallen below 1.7%. As a benchmark for almost all yields, the decline in Treasury yields means that almost all financing costs have fallen. Especially for companies, this means that companies can use more Low interest rates to start financing.
This will inject a strong new force into the next upward movement of this round of bull market.
After Bitcoin broke through the peak of the previous bull market at the end of last year, I have repeatedly pointed out that a major driving force for this round of bull market is the entry of institutions into Bitcoin. So far, I have written many articles to share with you the entry of top Wall Street capital one after another. The giants of Wall Street have already stepped into this threshold, but they are still scratching their heads. I believe they are gaining momentum and waiting for opportunities, so the climax is still to come.
The entry of Wall Street institutional investors has led to the entry of companies (especially listed companies).
Among listed companies, MicroStrategy is the most aggressive and daring to buy Bitcoin. This company and Grayscale are almost the two vanguards at the forefront of this round of bull market. After MicroStrategy, it was Tesla that showed its name. Tesla not only bought Bitcoin, but also supported Bitcoin payment; followed by the Chinese listed company Meitu; recently, it has been reported that GM may support Bitcoin payment.
All of this clearly conveys a message:There is also FOMO sentiment among listed companies towards the entry of Bitcoin.
Why?
Why?
Because Oracle is considered to be the next listed company that is very likely to enter Bitcoin. On the one hand, there is information that the CEO of MicroStrategy once suggested that Oracle learn from Tesla to buy bitcoin; on the other hand, the CEO of Oracle is a member of Tesla’s board of directors and should know Tesla’s purchase of bitcoin well.
So everyone has such a guess. In fact, this is not so much the speculation of the industry as it is the expectation of the industry, especially the listed companies. They still need another model like Tesla to give them confidence in entering Bitcoin.
According to estimates, Tesla’s income from buying bitcoin has far exceeded its income from selling electric vehicles. Among U.S. listed companies whose performance is generally dismal due to the impact of the epidemic, this cannot but be said to be a good way to save their performance. It is impossible for listed companies to turn a blind eye to this.
At this time, the decline in the yield of U.S. Treasury bonds provided a godsend opportunity for all listed companies to raise funds. Listed companies can borrow at almost zero cost. In the absence of good investment targets at the moment, the soaring digital currency coupled with the demonstration effect of MicroStrategy and Tesla who have made substantial profits by buying Bitcoin, everyone can see the "no cost" contained in it. "Great" opportunity.
Which company can refuse such a temptation? Presumably, many companies are in the final struggle and hesitation before the door. So they are all watching Oracle.
I have repeatedly said in previous articles that institutional investors also have the same herding effect as retail investors, and listed companies also have the same herding effect as retail investors.Sooner or later, FOMO sentiment will reappear among public companies as it has among institutional investors.
At that time,
At that time,There must be listed companies scrambling to enter Bitcoin. We will see a new round of magnificent tide.
