1. Home
  2. /News
  3. /Hedge Funds Bet Big on MicroStrategy as Bitcoin Tops $103K

Hedge Funds Bet Big on MicroStrategy as Bitcoin Tops $103K

Arslan Butt•Thursday, December 5, 2024•2 min read

As Bitcoin (BTC) hits $103,000 for the first time, institutional investors are getting in on crypto.

MicroStrategy (MSTR) is the go to stock for hedge funds betting on the continued growth of the crypto market. The company’s stock is already a proxy for Bitcoin’s performance and is up with the cryptocurrency’s all time high.

According to the latest filings, big hedge funds are pouring in. With Bitcoin sentiment super bullish, institutions are comfortable using MSTR to get indirect exposure to BTC’s volatility and upside.

MSTR Stock Rallies with Bitcoin’s Breakout

MSTR stock is up 20% to $579.42 since Bitcoin hit $100K. The company owns over 160,000 BTC and is getting a big boost from Bitcoin’s rally, adding billions to its market cap.

According to market analysts, MSTR is a magnet for institutional investors looking to get exposure to Bitcoin’s price movements without actually holding the asset. A report from Ark Invest notes MSTR stock outperformed Bitcoin in previous bull runs and that’s attracting more hedge fund attention.

Hedge funds like Renaissance Technologies and Bridgewater Associates are buying more MSTR, so institutional conviction is high. And with the derivatives market at all time highs—open interest up 15% to $72 billion—MSTR is even more a Bitcoin heavy company.

Risks and Future Outlook for Investors

While the excitement around Bitcoin’s breakout is great, there are risks. MSTR is a Bitcoin play so investors are exposed to volatility. A big correction in Bitcoin could hurt MSTR’s stock.

But analysts are expecting more and Bitcoin could hit $120,000 soon. If that happens MSTR will benefit even more. But investors must weigh the benefits of indirect exposure to Bitcoin vs the risks of MSTR and BTC volatility.

Key Points:

  • Bitcoin surpasses $100K, fueling MicroStrategy’s stock rally to $579.42.

  • Hedge funds like Renaissance and Bridgewater increase MSTR positions.

  • Analysts project further growth but warn of volatility risks for MSTR investors.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
img
Bitcoin Nears $90K as Economic Factors Help the Crypto Market
2 hours ago
img
Bitcoin and the Psychology of Wealth: Why Fear Keeps People Poor
5 hours ago
img
Forex Signals Brief March 24: Can Services & Mfg. PMIs Signal a Global Economic Rebound?
7 hours ago
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Add 3440

XM

Best Forex Brokers

🏆 7 Best Forex Brokers

🥇
Minimum Deposit
$100
 Visit Broker
🥈
Minimum Deposit
$100
Visit Broker
🥉
Minimum Deposit
$25
Visit Broker
4
Minimum Deposit
$200
Visit Broker
5
Minimum Deposit
$100
Visit Broker
6
Minimum Deposit
$200
Visit Broker
7
Minimum Deposit
$1
Visit Broker