MicroStrategy Stock Price Down as Bitcoin Plummets

MicroStrategy Inc. (MSTR) fell 5.67% on Tuesday as Bitcoin (BTC) continued to drop.

The software analytics company is well known for buying up large quantities of Bitcoin, serving as a proxy for the cryptocurrency and inflating its price. The company is one of the biggest holders of Bitcoin in the world, making its owners true crypto whales and major BTC rate movers.

Even their recent purchase of $623 million in bitcoins (9,245 coins) was not enough to keep Bitcoin’s price from falling. Bitcoin has fallen 12.58% in the last seven days, spurred partly by worse than expected inflation numbers and selloffs as a result of retracement fears.

When a cryptocurrency coin or stock makes huge gains in a short period of time, many investors will sell off what they own to make their profits. It’s the whales and long-term investors that help to push Bitcoin and similar cryptos higher after a new record is broken. Their purchasing power has not been enough to keep Bitcoin from slipping, as it has moved from nearly $74,000 to a current price of about $64,000 (BTC/USD).

Can MicroStrategy Recover?

The MSTR price is already gaining back a little of its losses. In the premarket hours of trading, MicroStrategy is up by 221% compared to the day before. Before the drop, the MSTR price was at $1,802 per share. It dropped to a low of $1,245 and is now up to $1,448.

It seems the decline was a temporary one, and MicroStrategy is managing to recover somewhat. Because the company’s assets are so closely tied to Bitcoin, we may not see a full recovery unless Bitcoin starts to drastically improve. That could happen if today’s FOMC meeting goes well and provides positive economic data that gives the crypto market and stock markets a boost.

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Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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