Saylor’s Microstrategy Enjoys Share Price Bump As Bitcoin Halving Draws Closer

Michael Saylor’s Microstrategy is enjoying a share price rise of around 7% as analysts continue to predict a Bitcoin price rise next year after the halving.

A major equity research company has come out and said that Bitcoin’s imminent increase due to halving next year would also prove beneficial to Microstrategy’s stock price. 

Bitcoin Halving to Increase MicroStrategy’s Share Price – Berenberg Capital Markets

Berenberg Capital Markets, a banking and advisory service provider based in Hamburg, has distributed a research note stating that the next Bitcoin halving will spell good news for Microstrategy, a software firm based in the US. 

In the research data shared with the Block, it was revealed how Michael Sayler’s Microstrategy had been underpinned by the upcoming Bitcoin halving. 

With Bitcoin Halving, the number of tokens that can be mined from cryptocurrencies will go from 6.25 to 3.125 per Block. The goal of halving is to reduce the availability of Bitcoin, thereby increasing its rarity. And as it has already been said that only 21 million Bitcoin will be created, even if a boost doesn’t happen in BTC price, its value will be maintained. 

Another reason why Satoshi Nakamoto added this cap is to prevent Bitcoin to have the same inflationary issues as traditional currencies. That is one of the reasons why Bitcoin has been advertised by many as a way to hedge against inflation.

Coming back to halving, the next estimated date for Bitcoin halving is 14th April 2024. 

Last Bitcoin ETF decision deadline: 3/19/24

Bitcoin halving estimate: 4/16/24

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— Will Clemente (@WClementeIII) July 10, 2023

The service provider predicts Microstrategy’s stocks to be worth $430 in the coming days, stating that the software firm derives most of its value from the 152,333 Bitcoins it holds. 

Historically, Bitcoin’s halving has been followed by short periods of corrections which are then followed by massive rallies. The rallies of the past two halvings were in triple digits, with the halving of 2020 pushing Bitcoin’s price to its all-time high at $69k. 

Upon research, we found that there might be some truth to these speculations. Microstrategy’s trading view chart shows that its stock price reached its all-time high ($1034) when Bitcoin reached its first bullish peak of 2021 at $57k. 

With the current value of $407.7, a 7% climb in the last 24 hours, Microstrategy has received a bullish prediction from Berenberg. The service provider has stated that Microstrategy could go up to $430 soon. 

In April this year, Microstrategy (MSTR) increased by a massive 140% YTD with $350 per share. That growth was driven by Bank of America and Fidelity Investments increasing their Microstrategy exposure via a passive Bitcoin investment. 

Berenberg has added that Microstrategy’s and Microstrategy’s price has a close to 0.90 correlation. 

Michael Saylor’s admiration for Bitcoin is worthy of note. The entrepreneur has once said in 2022 that he would be buying Bitcoin forever.

Bitcoin Price Analysis – World’s Leading Coin is Testing $31k Resistance

Bitcoin has increased by 1.54% in the past 24 hours and is currently trading at $35,554. The crypto asset has been trying to test its $31k support today but has retracted after getting as close to $30.98k. 

Bitcoin’s RSI currently stands at 60.22, putting it relatively close to the oversold zones. That indicates a positive sentiment. Another bullish sign is the above zero MACD histogram.

Standard Chartered Bank has increased its BTC price target. It now says that the world’s leading crypto could reach $120,000 by the end of 2023. 

While the real results are yet to be seen, we must admit that the current growth path taken by Bitcoin may persist for the long term. 

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