Joe Burnett, Vice President of Strive, a Nasdaq-listed company with Bitcoin strategic reserves, stated that understanding the concept of BTC break-even Annualized Rate of Return (ARR - the rate of return on investment converted to an annual basis) is key to grasping the market structure. He explained via X that "there are three main ways global capital invests in BTC. The first is a strategy that anticipates long-term BTC appreciation. If investors can procure long-term funds at a cost of less than 20% per annum, they can use this to purchase additional BTC. The second is a neutral strategy represented by digital credit. From this perspective, even if BTC only rises by 3.3% annually, dividends can be sustained through capital gains. Therefore, investors of this type believe it is sufficient for BTC not to disappear and to maintain a level that consistently outperforms inflation in the long term, and it is likely that this perception has already somewhat formed in the market. The last is a bearish strategy, which involves short-selling BTC or leveraged products to bet on price declines. Currently, BTC-linked financial products tailored to these three investment tendencies are already available in the market. These products will serve as channels for 1,000 trillion dollars of global capital to flow into the BTC market," he explained.
