MicroStrategy stock price is under pressure as its core asset, Bitcoin continues to experience a slump. The stock is still up by 10.5% in the last five sessions’ performance relative to BTC’s decline by 5.7% in the same period. Concerns over the Fed’s high interest rate regime in 2025 have seen investors reduce their exposure to volatile assets like Bitcoin.
Bitcoin’s continued decline comes barely a week after MicroStrategy (NASDAQ: MSTR) bought 1,070 BTC at an average price of $94,000. That is about 0.5% above BTC’s price as of this writing. However, the decline in MSTR price is likely to be disproportionately larger if Bitcoin’s decline extends toward the $90k support in the near-term.
Microstrategy stock price has outperformed Bitcoin in the last year, yielding 452% in profit against the coins 102%. That has led to claims that the company is overvalued. However, its investment strategy has paid off, with its current BTC holdings bought at an average price of $58,129. That means the company’s current inventory of 447,470 BTC coins is still in substantial profit of more than 80%.
Going forward, a friendlier regulatory environment in the United States is likely to support Bitcoin’s upside despite the higher-for-longer interest rates. That will provide an upside propulsion to MicroStrategy stock price. Institutional adoption of Bitcoin will play a key role in injecting more fuel to the crypto coin’s upside.
MicroStrategy stock price pivots at $341 and the RSI indicator favours the continuation of the downside. Immediate support is likely to be at $326, but an extended control by the sellers could clear the path and send MSTR price to test $317.
Alternatively, the buyers will take control if the stock moves above $341. That will likely see the stock move highet to encounter the first resistance at $351. Meanwhile, breaking above that level will invalidate the downside narrative. Also, a stronger upside momentum could extend gains and test $362.
This post was last modified on Jan 09, 2025, 12:20 GMT 12:20