- Berenberg Capital Markets, a leading European bank, has issued a report on MicroStrategy and the cryptocurrency market.
- The bank suggests that the performance of the software company’s stock values is largely determined by the 150,000 BTC it owns.
- The report also indicates a correlation between MicroStrategy’s shares and Bitcoin prices, predicting a rally in both if the trend continues.
Anticipating a Rally in Crypto and Stocks
Founded in 1590, Berenberg Capital Markets is one of Europe’s most influential banks. Recently, it has turned its analytical gaze towards MicroStrategy, a software company with significant investments in Bitcoin. The bank’s report, shared with the US media outlet The Block, suggests that the company’s stock performance is largely influenced by its Bitcoin holdings. In particular, the bank points to the 150,000 BTC that MicroStrategy currently owns.
Bitcoin’s Influence on MicroStrategy’s Performance
The bank’s report goes further, suggesting a correlation between the performance of MicroStrategy’s shares and the price of Bitcoin. If this correlation holds, the bank predicts that a rally in Bitcoin prices could trigger a similar rally in MicroStrategy’s stock. This is based on the observation that rallies typically precede halving events in the Bitcoin market. If this pattern continues, the bank expects a rally to begin within the next four months and last until October 2025.
Expectations for the Future
Given the close correlation between MicroStrategy’s shares and Bitcoin prices, which the report estimates at 1 to 0.9, a sharp rally could significantly boost the company’s stock prices. This prediction is based on historical trends and the bank’s analysis of the current market conditions. However, as with any prediction, it is subject to change as market conditions evolve.
