MicroStrategy Shares Surge 15% Despite Cramer’s Warning, Bitcoin’s Rise Contributes
The Essential in Brief
Despite warnings from Jim Cramer, the host of CNBC’s financial show Mad Money, against buying MicroStrategy shares [MSTR] as a way to invest in Bitcoin [BTC], MSTR has made an impressive recovery. The stock again surpassed the $1,500 mark on Wednesday, recording a rise of over 15% – twice as much as BTC over the same period.
MicroStrategy Stock Rises After MSCI Inclusion
A significant factor for this upswing could be the inclusion of MicroStrategy in the MSCI (Morgan Stanley Capital International) Index. This development was referred to by Bloomberg ETF analyst Eric Balchunas as a “big deal” for MicroStrategy, as it increases the visibility and investment opportunities for the company. In addition, a positive development in the Bitcoin price on Wednesday also contributed to MSTR’s recovery, especially as key technical indicators on the price charts switched to green.
Technical Analysis and Market Movement
After a high in March at $1,999, MSTR fell to $1,009 at the end of April. However, the recovery in May was steady, leading the stock to surpass the 50% ($1,219) and 38.6% ($1,397) Fibonacci retracement levels. Moreover, the price broke through the 20-day SMA (Simple Moving Average), suggesting that more buyers jumped on the MSTR train on Tuesday, the day of the MSCI inclusion announcement. The market closed on Wednesday above $1,500, thereby signalling a bullish market structure on the higher timeframe charts. The immediate bullish target is $1,631 before the all-time high of $1,999 comes into focus. The RSI (Relative Strength Index) also underscored a massive buying power, supporting all bullish forecasts.
Our Assessment
Despite warnings from a well-known market analyst, MSTR has put up an impressive performance that not only shows the resilience of the company but also the ongoing interest in Bitcoin-related investments. The inclusion in the MSCI Index and the positive development of the Bitcoin price have given MSTR a double boost. However, investors should be cautious and closely monitor market conditions as momentum remains neutral. The close correlation between MSTR and BTC suggests that a continuation of the Bitcoin recovery could drive MSTR further upwards. Nevertheless, caution is advised as market movements remain volatile.
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Sources: Benjamin Njiri, Jibin Mathew George
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Price | $103,623.00 |
| 24h % | -2.62 % |
| 7d % | 3.22 % |
| 30d % | 14.57 % |
| 60d % | 52.04 % |
| 1y % | 149.09 % |
| Market Cap | $2,051,754,783,520.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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