Not enough attention has been directed to the potential that the QQQ Index listing has . It is a gate for Bitcoin to be invested (indirectly) by the MicroStrategy stocks. The whole system is actually to easy to understand but highly risky game at the same time.
First of all, the index funds directly put a certain percentage of money in the indexed stock regardless of their price, size or other parameters. MicroStrategy was able to grow enough to enter the QQQ index that passively invest in its stocks with the listing. Now, those who want to put some money for their future in NASDAQ index fund will buy MicroStrategy with little money.
As the massive index fund grows, the amount of money grows at the same time. Imagine the case that MicroStrategy keeps growing in terms of the valuation and ranks up in the index fund. This will result in more percentages to be allocated for MSTR which means Michael Saylor can buy more spot Bitcoin to drain the liquidity in the market.
As MicroStrategy grows in value with higher prices in Bitcoin, they will get more money from index funds. The cycle in which the company ranks up, Bitcoin goes up and more money is supplied to keep the engine launched, the vicious cycle can be highly self - sufficient to run for a long time.
The risk we are taking is that the growth of Micro Strategy can be threatening for Bitcoin as it inevitably centralizes the chain and makes it vulnerable to potential risks from the side of MSTR. On the other hand, this can be seen as a way of manipulation and a harsh decision / policy by a country or directly the US can end this self - fulfilling cycle with a dramatic final.
For now, we are watching a professional doing his masterpiece. Yet, this also means that we all agree to watch this gamble.
I 
MicroStrategy keeps buying spot Bitcoin in very short intervals. The market is running short of Bitcoin as the spot Bitcoin purchases make it scarcer over time.
There are only 21M Bitcoin and there is not enough inflation of the coin to neutralise the demand. Eventually, we are testing a new All Time High every time we see massive purchases.
What do you think about the scarce Bitcoin experiment in this purchasing cycle?
Share your thoughts below 👇
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I didn't ealize these purchases were occurring at regular intervals. A 41% return is very good, even over the 2-3 year time period he is accumulating it over.
What do you think will be the impact of the next bear market on Microstrategy?
I don't think he has been through a bear market yet?
With the arrival of Trump and the growing institutional investment in Bitcoin, it may still have some more way to go.
Till the second half of 2025, we might be more bullish IMHO
I will watch this closely and I think it's great to have a sustained bull market.
I will neeed to google how long previous Bull markets lasted.
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