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NEAR Protocol
Pudgy Penguins
Key Insights:
- Wall Street analysts see the MSTR stock price could jumping by 25%.
- Bitcoin has solid fundamentals, including rising demand and falling supply.
- Technicals suggest that the MSTR stock is ripe for a bull run.
The MSTR stock price retreated by over 4% on Friday as the recent bullish momentum in the crypto market faded. Still, Wall Street analysts believe that the Strategy stock has more upside, with their target price being at $530.
Wall Street Analysts are Upbeat on MSTR Stock
The MSTR stock price has done well in the past five years as the company embraced a Bitcoin treasury strategy. It has spent billions of dollars accumulating 601,550 coins at an average price of $71,269.
Wall Street analysts are upbeat that the coin has more upside to go. The average estimate among these professionals is $530, about 25% above the current level.
These analysts believe the company’s business will continue thriving as the Bitcoin price gains momentum. Some of the most upbeat analysts are from companies like Barclays, TD Cowen, and Benchmark, with a price target of $475, $680, and $650, respectively.
Trump Allowing Retirement Investments in Crypto is a Catalyst
The MSTR stock price has numerous catalysts that may drive it much higher over time. First, there are media reports that Trump will approve retirement funds to invest in Bitcoin and other cryptocurrencies.
Such a move will be highly bullish for Bitcoin because these retirement funds currently hold over $9 trillion in assets that have continued to grow.
As a result, if they invest a small portion of their funds in Bitcoin, it may lead to higher demand at a time when it is already growing. For example, financial experts normally recommend investing between 5% and 10% of a person’s portfolio in gold.
Since Bitcoin is a riskier investment, a 2% allocation would mean $180 billion in assets invested. Those inflows would come when BTC sees unprecedented demand from Wall Street investors and companies.
The surging demand would also come when the supply in exchanges has plummeted in the past few months. CoinGlass data shows that the supply has plunged to 2.14 million coins, down by 2.81 million in January this year.
The upcoming Federal Reserve interest rates are another key catalyst that may push the MSTR stock price higher. While the Fed has resisted calls by Trump to cut rates, it will likely do so in either September or October.
Most importantly, Donald Trump will appoint a new Fed Chair next year, who will mostly share his view on interest rates. On Friday, he reiterated that the Fed should cut rates to 1%.
MSTR Share Price Has Strong Technicals
Meanwhile, technical analysis points to more MSTR stock price gains this year. The daily chart shows that it has remained above the 50-day and 200-day Exponential Moving Averages (EMA) this year.
It has also formed an inverse head-and-shoulders pattern, a popular bullish reversal pattern. The head was at $230, while the left and right shoulders were between $300 and $360. Its neckline was at $430, where it recently made a bullish breakout.
The Relative Strength Index (RSI) has formed an ascending channel, indicating its momentum. Therefore, the Strategy share price will likely continue rising as bulls target the all-time high of $541.
The bullish MSTR stock price forecast will become invalid if it drops below the right shoulder section.
Summary
Wall Street analysts are optimistic that the MSTR share price has more upside in the coming months.
Based on Bitcoin’s history in the past 16 years, there are odds that the 21% upside is highly conservative. That’s because Bitcoin will likely keep rising in the long term as it has in these 16 years. For example, BlackRock estimates that the coin will jump to $700k long-term, while Cathie Wood sees it hitting $2.4 million by 2030. Those gains will reflect on MSTR’s shares.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
