Shares in Michael Saylor’s Strategy (MSTR) stock have sunk over 6% on Tuesday and over 12% since the end of last week. The slip comes amid a bearish sentiment around the crypto market, primarily BTC, which is nearing $100,000 for the first time in six months. MSTR ended Tuesday trading at $246.99.
The largest crypto plunged 4.5% over the past 24 hours and 11.8% over the past seven days to under $100,000, its weakest since June. Ethereum’s Ether (ETH) also fell below the crash lows at around $3,410, the lowest in three months, and down nearly 6% today. Strategy, being the largest institutional investor in BTC, slipped in stock value as a result, with investors often tying MSTR to BTC price.
The ongoing market crash is likely due to macroeconomic conditions. Federal Reserve Chair Jerome Powell said that slow economic growth and rising inflation could present challenges. The cautionary statements may have led to Bitcoin and the larger crypto market dipping, despite an interest rate cut.
Also Read: Will Bitcoin Falling Below $100,000 Lead to a 2022-Like Crash?
Crypto exchange Coinbase (COIN) and digital asset investment firm Galaxy (GLXY) also fell by similar amounts on the stock market. As bitcoin has fallen almost 20% from its record high above $126,000 less than a month ago, the market is at a crucial inflection point, Vetle Lunde, head of research at K33, said in a Tuesday note. “BTC has closed above $100,000 for 180 consecutive trading days, but is now dangerously close to this material psychological price level,” he wrote.
Despite BTC’s recent dip, investors still see a rebound coming, including former Strategy CEO Michael Saylor. The Strategy (MSTR) founder forecasted Bitcoin (BTC) to reach $150,000 by the end of 2025 in an October interview. The popular Bitcoin bull hasn’t been shy in his optimism about BTC, always suggesting it to be the future of finance and labeling it “digital gold.” Should BTC reach those levels, Strategy (MSTR) stock could also surge back from these lower levels.