MicroStrategy Inc. ( MSTR ) experienced a notable 5.87% increase in its stock during pre-market trading on Thursday. This surge is attributed to a significant rise in Bitcoin’s (CRYPTO: BTC) price, which reached $96,578.38, as per Benzinga Pro.

In 2024, MicroStrategy was a prominent player in the crypto-linked asset sector, achieving an impressive 342% gain year-to-date. However, the stock has recently faced challenges, experiencing over 23% decline over the past month. As of the last closing at $289.62, it has fallen below its eight, 20, and 50-day simple moving averages, indicating a bearish trend.

Despite these pressures, the stock remains above its 200-day moving average of $195.03, suggesting some long-term bullish potential. Analysts have set a consensus price target of $449.5 for MicroStrategy ( MSTR ), with BTIG providing the highest target of $690 on Dec. 11, 2023, and Jefferies offering the lowest at $140 on Nov. 10, 2022.

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Recent analyst ratings from Bernstein, TD Cowen, and Barclays, released in late 2024, suggest an average price target of $546.67. This indicates a potential upside of 77.91% for MicroStrategy ( MSTR ) based on these ratings.

Why It Matters: MicroStrategy’s stock performance is closely tied to the fluctuations in Bitcoin’s price. The company’s strategy of investing heavily in Bitcoin has led to significant gains, but it also exposes the stock to volatility. While 2024 was a stellar year for MicroStrategy ( MSTR ), the stock has recently encountered a bearish turn, reflecting the challenges of navigating the crypto market’s ups and downs.

Meanwhile, Galaxy Research forecasts that Bitcoin could surpass $150,000 in the first half of 2025, with the potential to hit or exceed $185,000 by the fourth quarter. This projected growth is driven by increased adoption from institutions, corporations, and even nation-states, with Bitcoin aiming to capture 20% of gold’s market capitalization.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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