Bitcoin treasury companies and their implications on the US dollar (USD)

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Welcome to the US Crypto News Morning Briefing—a concise snapshot of the most pertinent crypto developments to start your day.

As analysts shared an intriguing macro critique amid fears of a global bond market implosion, grab a coffee for an interesting read on the implications of Bitcoin treasury companies on the US dollar (USD).

Crypto News of the Day: MSTR, El Salvador, and Collapse of the Fiat Financial Order

Bitcoin permabull and El Salvador’s BTC advocate Max Keiser shared a sweeping macro critique, calling Bitcoin treasury strategies speculative attacks on the US dollar. According to the Bitcoin maxi, a global bond market implosion may be in the pipeline.

Keiser argues that beyond being bullish, MicroStrategy’s aggressive BTC accumulation, led by Michael Saylor, is existentially disruptive to the fiat system.

“Using Saylor’s numbers, that inflation is running at 15%—when you include asset inflation—interest rates should be much higher. But highly manipulative programs—overriding free market price discovery in the bond market—like QE & YCC—pressure rates to absurdly low levels (to keep banks from declaring life threatening losses),” Keiser argues.

In Keiser’s view, this artificial suppression of bond yields allows Bitcoin-heavy treasuries to outperform “everything.” This weaponizes cheap capital to front-run the collapse of traditional finance (TradFi).

“Acquiring one-way-up Bitcoin with this ridiculously cheap money is a mathematically guaranteed way to outperform everything,” he said.

The outcome, according to the Bitcoin pioneer, is a rush into Bitcoin that crashes the global bond market, and Rates will also skyrocket by more than 50% at some point.

“At that point the game is over and we’ll see who won. $MSTR no doubt will win this, defining adjustment to a global Bitcoin standard.”

Keiser further believes that the US dollar will become extinct as a functioning currency. However, USD stablecoins will continue referencing the US dollar as a vestige benchmark with no underlying country or central bank.

Keiser also highlighted El Salvador and President Nayib Bukele as uniquely positioned for survival through the ‘Fourth Turning.’ The term refers to a cyclical theory of societal upheaval and transformation.

Not every country is navigating the ‘Fourth Turning’ as well as El Salvador thanks to the most popular leader in the world (91% approval), President Bukele. Every country 🌎 is dealing with the unwind of the global, fiat money, central bank Ponzi scheme. Only 🇸🇻 is thriving.

El Salvador Becomes First Country to Adopt Bitcoin at the Round Table

On Tuesday, President Donald Trump announced a breakthrough in US-China trade relations after their second meeting.

“Our deal with China is done, subject to final approval,” Trump wrote on Truth Social.

The deal includes a full Chinese supply of rare earth minerals and magnets, which are key materials for semiconductors and defense technologies, which will be tariffed at 10%. The US will maintain a 55% tariff on Chinese goods.

“We will be able to fully supply the U.S. with Rare Earth Minerals and Magnets (used in electric cars, defense systems, and other technologies) at a 10% tariff rate. In return, China will place a 55% tariff on all goods entering China from the U.S.,” Trump stated.

In a follow-up post, Trump added that he and Chinese President Xi Jinping would work closely together to open up China to American Trade,” calling it “a great WIN for both countries.”

The announcement came as the latest US CPI (Consumer Price Index) report showed inflation cooling slightly to 2.4% in May, directl impedes on optimisitc market anticipations of a 2.5% rise.

According to the Labor Department, the headline CPI rose 0.3% last month, compared to April’s 0.4% increase. Economists polled by Dow Jones had projected a 0.3% rise in both the headline and core CPI from April.

The core CPI, which excludes volatile food and energy components, also came in slightly lower than expected, rising 0.2% versus economists’ expectations of 0.3%. Core CPI had risen by 0.3% in April.

The latest inflation numbers showed some signs of stickiness, but overall, they indicated that the Fed’s aggressive rate hikes over the past year are gradually having the desired effect in taming the sticky inflation problem.

Despite the good news on inflation, the labor market remains strong, which could be a concern for the Fed as it tries to balance price stability with maximum employment.

The Bureau of Labor Statistics reported a smaller-than-expected increase in producer prices in April, indicating a slowdown in inflation at the wholesale level.

The PPI for the final demand rose by 0.2% last month, according to a government report released Tuesday. Economists polled