- In the last 24 hours, MicroStrategy (MSTR) stock climbed 11% to $719.
- The gains coincided with Bitcoin’s substantial peak to $50,363.
Stocks in the cryptocurrency and mining sector were upbeat after Bitcoin’s two-year high of $50,363 on February 12th. Crypto-mining equities and MicroStrategy (MSTR) both had double-digit increases over the last week, which is similar to BTC’s 17.5% rise. In the last day, MSTR stock has climbed 11% to $719, and in the past week, it has climbed 33%.
The software firm and its chairman and founder, Michael Saylor, are well-known for their huge Bitcoin holdings and their advocacy of Bitcoin as a digital gold and store of wealth. To protect itself against inflation, the corporation has put 190,000 bitcoin in its treasury. On February 7, Michael Saylor posted on twitter that the company had purchased an extra 850 BTC for $37.2 million in January.
Strong Correlation
When MicroStrategy added Bitcoin to its books in December 2020, it was the first publicly traded company to do so. There seems to be a significant link between MSTR and BTC, since the share price of MSTR has increased by over 300 percent since then, matching the rise of BTC.
On February 12, the price of MSTR hit an intraday high of $712, coinciding with Bitcoin’s peak at $50,363. A recent value of 0.94 for the correlation coefficient between MSTR and BTC prices indicates a robust association between the two assets’ price movements.
At the same time, Ethereum is also seeing a positive move, and it is very close to $2,680, its two-year high. Importantly, research shows that stock market indices throughout the world are rising as investors wait for the U.S Federal Reserve to announce interest rate decreases, with May being the most probable beginning point.
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Source: https://thenewscrypto.com/microstrategy-mstr-soars-33-weekly-amid-bitcoin-price-surge/