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crypto.news 2025-02-03 11:54:33

MicroStrategy takes a 5.85% hit pre-market amid crypto chaos: What’s next for MSTR?

Market turmoil from Trump tariffs has lowered MicroStrategy’s stock MSTR by 5.85%. The question is whether the stock will remain a proxy for Bitcoin or fall like most stock prices. MicroStrategy, the largest corporate holder of Bitcoin ( BTC ), is down 5.85% in pre-market trading on the heels of a large crypto downturn. Pre-market trading offers insights into market sentiment ahead of official hours. MSTR stock prices fell, revealing fair value gaps (FVGs). Due to crypto market volatility, pre-market activity forecasts another decrease to $317.25. Sourced from TradingView by crypto.news Crypto market chaos On Saturday, Feb. 1, the White House put tariffs of 25% on Mexico and Canada and a 10% tariff on China. As a rebuttal to the tariffs imposed, Canada imposed a 25% tariff on U.S. products. This trade war has given rise to short-term inflations, according to analysts at Singapore-based crypto trading firm QCP Capital. However, on Feb. 3, CoinShares reported that digital asset investment products had inflows of $527 million, although this had mostly fluctuated on news headlines and general market concerns, including the news about DeepSeek . MSTR stocks New filings show MicroStrategy holds over 471,107 BTC, regularly buying more BTC. This technique links the company’s stock performance to BTC’s price. “MicroStrategy’s business is unique in its dual focus: traditional business intelligence (BI) software and Bitcoin investment,” say Oliver Rodzianko , an analyst on Seeking Alpha. In well-regulated markets like stock exchanges, MSTR provides a way for traditional investors to gain BTC’s price exposure without actually owning the asset. You might also like: Microstrategy stock offering oversubscribed 3x as ‘Bitcoin Effect’ continues According to market research platform TipRanks , MSTR is in buy now territory. The average 12-month price target is $557.50, a 66.52% upside over the current price. The amount of bearishness with Bitcoin at $100,000 is absurd😆 Just think about how far we've come vs a year ago. We are still in an incredible bullish price regime. — Dan Held (@danheld) February 2, 2025 Bullish optimism was last observed on Jan. 29, when MSTR outperformed big tech giants like Meta, Netflix, and Nvidia on the Nasdaq 100 YTD list. Read more: Satoshi Act Fund CEO: Utah will be the first to establish strategic Bitcoin reserve

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