The MSTR share price correlates with the Bitcoin price
The world of cryptocurrencies is absolutely insane right now. One day you could be making profits that people are only dreaming of and the next day you have all those profits returned to the crypto market. The crypto market is so volatile that even a man and his Twitter account can cause an entire crypto market to collapse (I’m looking at you, Musk). The nature of the crypto market is extremely volatile, which means that you can lose or make a lot of money in a very short period of time.
The most popular cryptocurrency is Bitcoin, and it has seen a lot of action since its launch in 2009 by Satoshi Nakamoto (whose identity we don’t yet know). It started as a relatively unknown digital currency that was worth nothing until it suddenly exploded and now everyone wants a part of the action. Other cryptocurrencies emerged from Bitcoin and have become major players in the cryptocurrency world, such as Ethereum, Ripple and Binance Coin. All of them have some weight behind them as there are many investors who have supported these coins. They were all pretty much unknown digital currencies until they gained momentum, and now they have market caps worth billions of dollars.
However, it’s not just cryptocurrencies that you can invest in to benefit from this crypto craze. You can actually invest in companies that have invested in cryptocurrencies themselves. Companies like Microstrategy Incorporated (NASDAQ: MSTR)who specifically bought $ 1.2 billion worth of Bitcoin.
Has micro-strategy accumulated a lot of bitcoin since it started adding cryptocurrency to its balance sheet in mid-August 2020. Some Microstrategy insiders liked Bitcoin, saying that Bitcoin “Consider cash” and a “reliable store of value“They have been on a buying spree ever since MSTR openly admitted their preference for Bitcoin. This move has been admired by many cryptocurrency advocates, and those advocates have since praised Saylor by putting him on a pedestal. Many cryptocurrency investors think this is a good one Step from Microstrategy as more companies begin to see the true potential of cryptocurrencies.
Microstrategy stock, on the other hand, hasn’t seen much love in value. It looks like Microstrategy stock is currently correlating with Bitcoin price. So if the Bitcoin price goes down, so does the MSTR stock price. With that in mind, the crypto market is slowly starting to rebound, meaning this could be the perfect buying opportunity to buy Microstrategy stocks while they are incredibly undervalued. As the crypto market rebounds and Bitcoin hits new highs again, we should see MSTR stocks skyrocket if the correlation persists.