Bitcoin is heading towards $100,000, yet the cryptocurrency trading groups are very quiet. After Trump's election, everyone was expecting an influx of liquidity; however, aside from the meme trading activated by Binance, all altcoins have been left far behind by BTC. Why? Why do altcoins drop when Bitcoin rises, and when Bitcoin drops, altcoins still fall?
The answer may lie within the $MSTR stock.
MicroStrategy buying Bitcoin is no longer a new thing in the cryptocurrency circle; it has become the BTC index in the US stock market since the last cycle. However, in September this year, MSTR once again attracted the market's attention. This time it was because MSTR actually started ahead of the Bitcoin price surge and maintained a continuous premium for Bitcoin in the subsequent market.
BlockBeats notes that the NAV premium coefficient (Net Asset Value Premium) is highly correlated with MicroStrategy's stock issuance activities. Once MSTR issues more shares, this premium coefficient tends to increase. According to MSTR Tracker, the current NAV premium is around 3.3.
As a result, many people have started to discuss 'why does MSTR have a premium'. In fact, MicroStrategy quietly began a new coin-buying strategy in the second half of last year, referred to as 'premium issuance'.
Related reading: (Why has the 'debt issuance to buy coins' strategy not changed, yet MSTR's premium has suddenly surged?)
In simple terms, MicroStrategy previously raised funds to purchase BTC through bond issuance, which meant that each share of MSTR represented a certain amount of BTC (this is also why it is regarded as the BTC index in US stocks). However, the 'premium issuance' model is simpler, more straightforward, and produces immediate results: when Bitcoin's price rises and the company's market value increases, MSTR's exchange rate against Bitcoin will generate a premium.
At this time, the company issues additional MSTR shares to buy more Bitcoin than the corresponding amount of shares at a premium, which further increases the BTC corresponding to each share of MSTR, meaning that the company's market value and the value of MSTR will also rise, and then the cycle continues, creating a perpetual motion machine.
In summary: The more MSTR is issued, the more valuable it becomes.
What does this have to do with the Bitcoin bull market? Aside from the fact that MicroStrategy accounts for 5% of the total circulation, the US stock market seems to be experiencing a paradigm shift. MicroStrategy CEO Michael Saylor has been emphasizing this year that there will be more and more MSTR in the US stock market, claiming that his model is an 'infinite money glitch'. At first, many did not take it seriously, but recently, with giants like Microsoft also beginning to explore 'Bitcoin treasury', you can feel the gears of fate starting to turn.
In other words, if Saylor's vision continues to become a reality, more and more US companies will adopt 'premium issuance' for their Bitcoin treasury, further tying Bitcoin's price to US stocks. This massive liquidity will be completely supported by BTC alone, having nothing to do with other altcoins (this is also one of the reasons why Bitcoin ETF inflows have surged recently while Ethereum ETF shows no response).
It can be anticipated that if the crypto industry halts its narrative innovation and practical capabilities, Bitcoin will gradually drift away from Crypto. In this broader context, the bull market leaves only two betas: one is Bitcoin, and the other is Solana, which supports liquidity within the circle.
