Bitcoin restraint could trigger a bullish case of Microstrategy

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Bitcoin tholding could trigger a bullish case of microstrategy

The Bitcoin thesis has the potential to trigger a bullish increase in Microstrategy, a US software company that mainly derives its value from its impressive Bitcoin stocks. Berenberg Capital Markets, a company based in Hamburg, has pointed out the upcoming Bitcoin tholding as a possible trigger for this bullish case in a recent research note. The halving events are significant events in the Bitcoin network and occur approximately every four years. With each halving, the rate of the new coin output is reduced by 50 %. This will slow down the inflow of new bitcoins on the market.

The fourth Bitcoin tholding is planned for April 26, 2024 and is expected to follow the historical pattern of the previous halves. Berenberg's research note stands out the trend of the previous three halves and indicates that a rally could begin halving in about four months. The rally would probably continue until about October 2025 if the historical pattern is followed. The research note also emphasizes the strong correlation between the share price of Microstrategy and the Bitcoin Prize, which is estimated at around 0.90. A significant increase in the Bitcoin price due to the fourth halving would most likely lead to an increase in the microstrategy share course.

This forecast is based on the positive prospects for the performance of Bitcoin after halving. In fact, the Microstrategy share has already recorded an increase of 7 % with the MSTR tick symbol after Berenberg's research report was published. The share was traded under its current price range in the previous month and is now rated with a value of $ 407.

The positive market reaction reflects optimism about the potential effects of the Bitcoin thion on the performance of Microstrategy. The halving has been associated with significant market movements in the past, and investors observe these events exactly to possible opportunities. The reduction in the new coin issue in combination with market demand has in the past to have price increases at Bitcoin. The expectation of the upcoming halving therefore aroused the interest and speculation of market participants. Berenberg's analysis supports the statement that the halving could have a bullish influence on the Bitcoin price and thus also on companies such as Microstrategy who hold considerable Bitcoin stocks.