MicroStrategy (MSTR) Stock Stares At Massive Breakout, Will BTC Price Catch Up?
Highlights
- MicroStrategy's stock (MSTR) has surged by 53% in the past month, closing at $192.20,.
- Bernstein analysts predict the MSTR stock could rise another 64% to $290, which may trigger a Bitcoin rally.
- Historically, MSTR's stock has been a strong indicator of upcoming Bitcoin price movements.
MicroStrategy, the world’s largest corporate Bitcoin holder and a proxy bet for investors, is seeing strong bullish action on Wall Street. The MSTR stock price is currently at a 6-month trading $192.20 level as of Tuesday’s closing, and eyeing a major breakout above $200. If history repeats, the BTC price will soon catch up with the MSTR stock gains, leading to a surge to $70,000 and beyond.
MicroStrategy Stock on Investors’ Radar
The MicroStrategy stock has seen strong buying interest in recent times with a staggering 53% recovering over the past month. This proxy Bitcoin bet has consistently outperformed the BTC price gains ever since the company adopted the Bitcoin strategy in August 2020.
Since then, in the last four years, the MSTR stock is up by 1208% while BTC has gained 445% in the same period. Furthermore, it stands second among the top ten best-performing stocks of the S&P 500 in the last four years. Companies worldwide have started adopting the MicroStrategy Bitcoin playbook with Japan’s Metaplanet making similar moves with consistent BTC acquisition.
In a report note earlier this week on Monday, Markus Thielen, founder of 10x Research, stated that despite the stock price being 44% overvalued in comparison to Bitcoin, it will continue to gain more strength once it crosses $180. He wrote:
“Market makers may be forced to hedge their short gamma exposure as they likely sold calls to retail investors), and hedge funds holding $4.6 billion in short positions on MicroStrategy shares could face pressure to cover those shorts if the price surpasses the $180 mark”.
This rally could also push Microstrategy to raise even more debt to acquire additional BTC. Thielen added: “Raising even more debt to purchase bitcoin seems logical. A breakout in MicroStrategy’s stock could have a ‘tail wags the dog’ effect, where the momentum in its shares positively impacts Bitcoin’s price, creating a feedback loop.”
Will BTC Price Catch Up?
Bernstein analysts believe that the MSTR stock can rally another 64% from the current levels surging to $290. The MSTR stock has always been a leading indicator of what’s coming for Bitcoin. On the monthly chart, the BTC price is up 14% while MSTR is up by 54%.
As of press time, the Bitcoin price is trading at $62,363.54 levels with a market cap of $1.232 trillion. Thus, if it catches up to MSTR, it can trigger a Bitcoin rally all the way to $70,000 and beyond.
- CZ Endorses Hyperliquid Rival Aster DEX, Token Rallies 1,500%
- Tom Lee’s BitMine Adds $84M in ETH as Expert Predicts Ethereum Rally to $5K
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- Crypto Market Correction Intensifies As S&P 500, DXY Enter Dangerous Territory
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
