Key Insights
- MSTR stock enjoys liquidity injection in the last 2 weeks as investors buy the dip.
- Major Canadian bank acquires 1.47 million MSTR, securing BTC exposure.
- Analyst Tom Lee describes MSTR as the most important stock to watch.
Strategy stock MSTR has been at the center of controversy this week after claims that Saylor was forced to sell the stock to fund interest payments.
While those claims may have induced some FUD, a deeper dive revealed some noteworthy details. Economist Peter Schiff commented on Strategy selling some of its MSTR stock earlier this week.
While this may have induced some FUD, it did not have much of an impact on the stock’s price movements.
On the contrary, MSTR stock attempted a bit of a bounce back in the first 3 days of December.
The stock was oversold since the second week of November but it recently formed a bullish divergence pattern with its RSI.
The bearish divergence was also accompanied by significant buying momentum demonstrated by the MFI indicator. The latter jumped back to levels last observed in mid-November.
Major MSTR Stock Purchases this Week Highlight the Rising Demand
While the MSTR price action and its indicators confirmed that investors were buying the dip, recent data revealed that institutional buyers were also diving in.
The National Bank of Canada, which is currently the country’s sixth largest bank, was reportedly among the biggest MSTR buyers this week.
The company reportedly spent $273 million to acquire 1.47 million MSTR stock.
The fact that one of Canada’s biggest banks is securing a stake in Bitcoin speaks volumes about how institutions view the cryptocurrency. Other financial magnates have also been securing MSTR exposure.
Recent reports revealed that Vanguard, a company with over $10 trillion in assets under management, reportedly holds over $3.2 billion worth of MSTR.
To put it simply, the narrative around MSTR is now shifting, revealing that major corporations are securing Bitcoin exposure.
The big question now is whether this shifting dynamic will lay the groundwork for MSTR’s extended recovery.
Will the new buying spree contribute to it price recovery? The answer to this question will depend heavily on whether Bitcoin’s price will continue to rise.
That outcome relies heavily on macro conditions, especially the FED and BOJ decisions, which will heavily impact global liquidity.
Tom Lee Describes MSTR as the Most Important Stock to Observe
There is no doubt that the MSTR stock has been a bit of a phenomenon lately. It has been securing the spotlight more often, even though partly due to negative publicity.
Financial analyst Tom Lee is currently considered one of the leading authorities in the investment landscape. He recently chimed in on the narrative during a recent interview.
Tom Lee described MSTR as the most important stock to keep an eye on, and his reason may explain the stock’s recent performance.
He described MSTR stock as a highly liquid proxy to Bitcoin and Ethereum. According to Lee, this description was the key reason why investors have been usingMSTR stock as a hedge for their BTC and ETH longs.
If true, then this could be one of the reasons why the stock price has been falling sharply. These hedged bets for MSTR’s downside have contributed to the stock’s downside in the last few months.
Nevertheless, sentiment around the stock is improving, and this could set the pace for heavy liquidity flows, which may have already kicked off.