Bitcoin now deflationary due to Strategy's BTC purchases — Analyst
Strategy, a Bitcoin treasury company, is accumulating Bitcoin at a rate surpassing total miner output, resulting in a -2.33% annual deflation rate. The company holds 555,000 BTC, which is illiquid and not intended for sale, contributing to a -2.23% deflation rate. Co-founder Michael Saylor promotes Bitcoin to investors and has influenced other companies to adopt similar treasury strategies. Strategy connects Bitcoin with traditional financial markets by channeling funds from TradFi investors into Bitcoin through corporate debt and equity sales. The company accumulates an average of 2,087 BTC daily, significantly outpacing the 450 BTC daily miner output. Institutional interest in Bitcoin is growing, with various entities purchasing BTC as a hedge against inflation. ETF inflows are stabilizing Bitcoin's price, but sovereign wealth funds are waiting for clearer US regulations before increasing their Bitcoin investments, which could further elevate prices.
