Bitcoin's next bull market hinges on digital credit, not just scarcity

Bitcoin’s next bull market won’t be fueled by scarcity or sentiment — it will be built on credit. Michael Saylor, executive chairman of Strategy (MSTR), believes the $60,000 level in early February marked Bitcoin’s price bottom, not because the asset was suddenly cheap, but because sellers ran out of reasons to sell. Bases form not on valuation, he argues, but on capital structure and liquidity shifts. And the shift is already underway. Exchange-traded fund inflows are soaking up daily Bitcoin supply. Corporations are reallocating treasury reserves into Bitcoin. The selling pressure that drives downturns has largely dried up. But Saylor sees something more structural ahead: the rise of digital credit layered on Bitcoin. The next cycle won’t just reprice Bitcoin — it will transform it. The goal is no longer just to hold Bitcoin, but to use it as collateral, income, and capital. Strategy’s own STRC preferred stock offers an 11.5% yield, a financial product built on Bitcoin’s balance sheet strength, even though Bitcoin itself pays no dividend. “We are stretching Bitcoin from a nonyielding asset into a capital markets engine,” Saylor said. That engineering — turning a store of value into a yield-generating foundation — is the mechanism of the next bull market. And analysts are pricing it in: Mizuho maintains an 'outperform' rating on Strategy with a $320 price target, implying 150% upside from $127.