MicroStrategy Shares Could Fall by 20% or More, Says Research
According to experts at 10x Research, the price of MicroStrategy shares could experience a significant drop of 20% or more. Their analysis suggests that the position is overvalued by 26% based on a regression model that examines the correlation between MicroStrategy and Bitcoin (BTC).
MicroStrategy’s Stock Price Surge in 2023
In 2023, MicroStrategy’s stock price has soared by a remarkable 320%. Since the beginning of the year, the stock price has increased from $141 to $670.71. In just the last month, it rose by over 32%. The overall increase for the year stands at an impressive 319.19%, as reported by TradingView.
MicroStrategy’s Bitcoin Holdings and Market Conditions
MicroStrategy added another 14,620 BTC to its holdings in 2023, resulting in an unrealized profit of $2.2 billion. Bitcoin itself has seen a price increase of 160% since the start of the year, reaching multi-month highs. This surge in value is driven by the anticipation of potential approval for spot Bitcoin ETFs and the upcoming halving event that reduces the available supply of Bitcoin for miners.
Hot Take: MicroStrategy Shares Face Potential Correction
While MicroStrategy has experienced significant gains in its stock price this year, experts warn that a correction could be on the horizon. According to 10x Research, the shares are overvalued by 26% and could potentially fall by 20% or more. This analysis highlights the correlation between MicroStrategy and Bitcoin, which has played a crucial role in driving the company’s stock price. As investors, it’s important to consider these factors and evaluate your position in MicroStrategy accordingly.
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