MicroStrategy (MSTR) Surpasses Bitcoin (BTC) in Market Gains: A Deep Dive into the Surprising Crypto Stock Performance

  • MicroStrategy stock has outperformed Bitcoin, miner stocks, and Coinbase’s COIN.
  • Despite having more upside potential on price charts, MSTR could be affected by BTC’s pullback.
  • MicroStrategy’s stock [MSTR] was the best-performing share with Bitcoin’s [BTC] exposure last week.

MicroStrategy stock has outperformed Bitcoin and other BTC-miner stocks, but will the rally extend?

MicroStrategy’s Stellar Performance Amidst Bitcoin Recovery

MicroStrategy’s stock [MSTR] has shown remarkable performance, outpacing Bitcoin, miner stocks, and Coinbase’s COIN. Last week, MSTR shares rallied 34%, reclaiming the $1500 level, boosted by the BTC recovery and MicroStrategy’s inclusion in the MSCI Index. The rally extended into the current week, hitting a high of $1740, adding an extra +4% as of 22nd May. Overall, MSTR’s double-digit performance eclipsed even Coinbase [COIN] and several other Bitcoin miner stocks.

MicroStrategy Stock vs. Other BTC-Linked Stocks

MicroStrategy’s shares recorded 3.6X more gains than Coinbase’s stock [COIN] when performance was adjusted on the weekly chart. MSTR was up 22% in the past five trading days, compared to COIN’s 6% over the same period. Interestingly, collective Bitcoin miner stocks also saw remarkable double-digit gains but were slightly lower than MSTR over the same period. Notably, Valkyrie Bitcoin Miners ETF [WGMI], which tracks top BTC miner stocks, including Marathon Digital’s stock [MARA], recorded 12.8% gains in the past five-day trading period.

Despite MSTR’s impressive performance, it’s worth noting that COIN’s performance has remained relatively muted, partly due to the ongoing lawsuit with the US SEC. Under the guidance of its founder and CEO, Michael Saylor, MicroStrategy has maintained its Bitcoin strategy. So far, in Q2, the firm added 122 BTC, bringing its total BTC war chest to 214,400 coins, worth over $15 billion based on current market prices. Compared to the firm’s current total of 17.7 million shares as of 22nd May, its BTC per share was approximately 0.01209 BTC.

Investors have flocked to MSTR, sometimes even more than BTC, the underlying asset they are seeking exposure to. MSTR’s allure could be irresistible, especially compared to BTC’s performance. MSTR has outperformed BTC on a weekly, monthly, and YTD (Year-to-Date) basis. In May, MSTR was up 55% compared to BTC’s 15%. On the YTD front, MSTR’s gains were over 140%, while BTC’s value was +58%. This meant MSTR holders had better returns than their BTC counterparts. So, what’s next for MSTR’s price?

What’s Next for MSTR’s Price?

On the daily chart, the key next bullish targets were the ATH of $1999 and $2300 based on the Fib retracement tool (yellow). The bullish reading on the RSI (Relative Strength Index) indicated that the above bullish targets were feasible. However, despite MSTR outperforming BTC on the price charts, a pullback by the king coin could erase part of the share’s gains. At the time of writing, BTC eased slightly below $70K after hitting the range-highs at $71K, while MSTR traded at $1650. MSTR’s further rally could be derailed if BTC extends its retracement.

Conclusion

MicroStrategy’s stock has demonstrated exceptional performance, outpacing Bitcoin, miner stocks, and Coinbase’s COIN. However, the future trajectory of MSTR’s price is closely tied to Bitcoin’s performance. While the bullish targets of $1999 and $2300 seem feasible, a pullback in BTC could impact MSTR’s gains. Investors should closely monitor BTC’s movements to gauge the potential for MSTR’s continued rally.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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