Fears of a Bitcoin Peak Send MicroStrategy Stock Plunging. Should You Buy or Sell Shares Now?
MicroStrategy (MSTR) has had a tough few weeks as Bitcoin (BTCUSDT) continued to bump into one headwind after another in February.
First, it was President Donald Trump's plans to raise tariffs, then came the hotter-than-expected inflation data, and then the $1.5 billion Bybit hack shook investor confidence in digital assets.
In total, MSTR shares have lost nearly 30% this month. Still, there's more than one reason to hope for a swift recovery in MicroStrategy stock.
Bitcoin Could Resume Its Upward Trajectory
Macroeconomic concerns continued to weigh on Bitcoin, pushing its price down to a new low near $78,000 on Friday, Feb. 28. Still, a Standard Chartered analyst remains bullish as ever on the world's largest crypto.
According to Geoffrey Kendrick, Bitcoin will eventually hit a $500,000 valuation as institutional capital continues to find its way into the digital asset. The analyst even downplayed the Bybit hack in his research note, adding the industry will be safer as it becomes 'more institutionalized.'
Kendrick's forecast is immensely bullish for MicroStrategy stock as its valuation is tied to Bitcoin. Once the crypto king resumes its upward trajectory as he believes it will, the price of MSTR shares could pick up just as quickly as it declined in February.
MicroStrategy Continues to Load Up on BTC
Investors should note that a sizable correction in Bitcoin like the one that's currently unraveling has precedence as well.
What follows after a massive pullback in the price of the world's largest cryptocurrency by market cap is usually a sharp move to the upside again. That's part of the reason why MicroStrategy itself continues to buy Bitcoin on the weakness.
The Nasdaq-listed firm has spent nearly $2 billion buying more than 20,000 coins of the digital asset over the past two weeks. An eventual recovery in BTC, it's convinced, will drive MSTR shares up as well in the coming weeks and months.
Analysts Remain Bullish as Ever on MSTR Shares
Despite a terrible February, analysts remain bullish on MicroStrategy stock. The consensus rating on the Bitcoin proxy currently sits at 'Strong Buy' with the mean target of $540 indicating potential upside of well over 100% from current levels.
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