Get ready for the highly anticipated Bitcoin halving event set to take place in April 2024, as it has sparked significant excitement among market participants who are eagerly expecting increased gains. This upcoming event holds promising prospects for Bitcoin bulls, particularly for MicroStrategy, led by the renowned Michael Saylor, as their substantial BTC holdings of 152,333 are poised to soar.
As a result, MicroStrategy’s stock (MSTR) is also expected to follow an upward trend.
Bitcoin Halving Optimism Soars
Berenberg Capital Markets, a prominent New York-based investment firm, has identified a crucial aspect of MicroStrategy’s value, which stems from the company’s ownership of 152,333 BTC on its corporate balance sheet. This means that if the price of Bitcoin experiences an upsurge, it could have a significant positive impact on MicroStrategy’s overall worth.
Interestingly, there is a strong correlation between Microstrategy’s stock price (MSTR) and the price of Bitcoin is approximately 0.90. This suggests that if Bitcoin experiences a strong rally after the halving, Microstrategy’s stock price may also rise.
Related: MicroStrategy Has Acquired Another 12,333 BTC For $347 Million, Skyrocketing Total to a Whopping 152,333
To further bolster the positive sentiment, Berenberg has issued an optimistic forecast for MicroStrategy, setting a price target of $430 for the company’s shares. Currently, these shares are trading at $407, demonstrating a growth rate of approximately 180% since the beginning of 2023.
Looking Back: What Does History Tell Us?
Drawing on historical data, Berenberg expects Bitcoin’s price to follow its established pattern of increasing before and after the upcoming halving event. The first halving in 2012 witnessed Bitcoin’s price skyrocket from around $12 to a staggering peak of $1,164 within a span of 367 days.
This analysis suggests that the fourth halving, expected in the future, could potentially trigger a pre-halving rally approximately four months from now.
Read More: Bitcoin Halving: Why It Matters & What To Expect
Bitcoin is Grabbing All the Eyeballs!
To better comprehend the potential impact of this rally, Berenberg analysts have explored the growing interest in Bitcoin exhibited by large investment firms. Their findings indicate that an increasing number of asset managers are seeking Bitcoin-related investment products, indicating a greater acceptance of Bitcoin within traditional finance.
However, it is worth noting that if the historical pattern persists, this rally could potentially last until around October 2025. This timeframe underscores the significance of carefully monitoring Bitcoin’s price behavior in the coming years.
Source: https://coinpedia.org/news/bitcoin-halving-projected-to-benefit-microstrategy-as-price-target-soars/