One of the biggest beneficiaries of the US dollar decline is Bitcoin.
In fact, with the US dollar now at a three-year low and speculation of Treasury buybacks, Bitcoin is up about $3,500 on the day.
If the U.S. Treasury were to buy back its own debt, it could inject even more liquidity into the markets and help push Bitcoin well above $100,000 again.
We also have to consider President Trump’s calls for Federal Reserve Chair Jerome Powell to cut interest rates to support the economy. Plus, we have to consider that Bitcoin much like gold, is a strong hedge against economic uncertainty and inflation thanks to its scarcity.
On top of that, President Trump’s support for Bitcoin and the establishment of a Strategic Bitcoin Reserve has been a strong catalyst. Even better, U.S. states, including Texas, Arizona and North Carolina are also creating plans for their own state-level reserves.
While you can always invest directly in Bitcoin, here are a few other ways to jump in.
MicroStrategy (MSTR)
With a market cap of $92.2 billion, MicroStrategy (MSTR) provides business intelligence, mobile software and cloud-based services.
But what makes it really exciting is its 528,185 Bitcoin holdings – which is now worth just over $48.2 billion at the moment. That means every time Bitcoin runs, the value of MSTR’s BTC holdings run, which sends shares of MSTR screaming higher.
From its last traded price of $346.49, we’d like to see it retest $450 – which could easily happen if Bitcoin can get back above $100,000.
ProShares Bitcoin Strategy ETF (BITO)
If you believe the value of BTC will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF (BITO). With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin, and is the world’s largest and most actively traded cryptocurrency ETF, according to ProShares.
BITO now trades at $19.90. From here, we’d like to see it retest $24 initially.
Marathon Digital (MARA)
Bitcoin mining stock Marathon Digital is just as attractive.
After dropping to about $10 a share, MARA is now up to $13.89. From here, we’d like to see it retest $15 a share initially – as it soars with Bitcoin.
Helping, analysts at Rosenblatt recently initiated a buy rating on the MARA stock, noting that its “the most levered to our bullish Bitcoin views.”