Markets
Crypto Selloff Broadens: MicroStrategy in Focus
The recent cryptocurrency sell-off is starting to deepen, with Bitcoin (BTC-USD), the world’s largest cryptocurrency, trending down nearly 4.6% today. BTC has already corrected by almost 10% last month.
The Crypto Slowdown
Other popular cryptocurrencies like Solana (SOL-USD), Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD), are even worse, with double-digit drops in the last seven sessions. As expected, investor sentiment in crypto-focused stocks like MicroStrategy (NASDAQ:MSTR), Coinbase (NASDAQ:COIN), Hive (NASDAQ:HIV) and Digital Marathon (NASDAQ:MARA) is also being hit today.
The sell-off comes as the Fed’s rate cut path remains uncertain and euphoria over the entry of crypto ETFs into cash fades. In fact, figures from Farside Investors indicate net BTC ETF outflows of around $734 million over the past ten days.
Potential Impact on MSTR Stock
This trend makes MicroStrategy a top crypto stock to watch. The company led by Michael Saylor has accumulated almost 226,331 Bitcoins so far. Additionally, MSTR has resorted to issuing debt to raise funds for its crypto purchases. While the stock has risen nearly 366% over the past year amid buoyancy in cryptocurrency markets, it remains exposed to risks from a broader downturn in the cryptocurrency market.
Short interest on MSTR is currently at nearly 21.3% and the stock is hovering dangerously around its 50-day moving average. Additionally, Canaccord Genuity José Vafi lowered its price target on MSTR to $1,826 from $2,047 yesterday. However, the analyst maintained his Buy rating on MSTR.
What is the price target for MSTR?
Overall, the Street has a Strong Buy consensus rating on MicroStrategy, along with a MSTR average target price of $2,230.33.
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