Will the Fed Buy Bitcoin? Analyst Says Saylor’s Strategy Beats Powell

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Bitcoin advocate and CEO of The Bitcoin Bond Company, Pierre Rochard, has stirred the pot with a bold claim: Michael Saylor’s Bitcoin-heavy approach is outperforming Federal Reserve Chair Jerome Powell’s policies. 

In a post on X, Rochard compared the Fed’s low-yield system with Strategy’s high-dividend Bitcoin reserves.

Bitcoin Reserves vs. Fractional Banking

Strategy, co-founded by Saylor, recently raised its dividend rate on STRC preferred stock from 9% to 10%. Backed by a staggering 636,505 BTC, the firm’s balance sheet has surged by 580%, putting its treasury strategy in the spotlight. 

Rochard calls this “full reserve banking,” arguing it offers better returns and stability compared to the Fed’s traditional fractional reserve system, which allows banks to lend most deposits while paying a modest 4.5% on reserves.

Powell Isn’t Buying Bitcoin

Despite growing pressure from crypto supporters, Powell has dismissed the idea of the Fed holding Bitcoin. He cited legal restrictions and made it clear there are no plans to change the law to allow it.

His comments come as the Fed weighs whether to cut interest rates in its September 16-17 meeting. Markets are betting on a cut, but inflation remains above the Fed’s 2% target, keeping uncertainty high.

A Volatile Backdrop for Bitcoin

Bitcoin has had a rough ride in recent weeks. A massive sell-off in August, where a whale dumped 24,000 BTC worth $2.7 billion, sent the price tumbling. Bitcoin is now trading at $111,533, up 1.56% in the last 24 hours.

The Fed’s hesitation on rate cuts has only added pressure on the market.

At the same time, the Trump administration is pushing for crypto deregulation and even exploring a U.S. Bitcoin strategic reserve. 

With Bitcoin clawing back and Washington’s stance on crypto shifting fast, all eyes are now on the Fed’s strategy. Will Powell buy Bitcoin?