MicroStrategy Stock Crashes With Bitcoin: What's Going On?

MicroStrategy Incorporated MSTR shares are falling Monday after the price of Bitcoin BTC/USD dropped below $50,000. 

The Details:

Bitcoin is trading around the $50,000 mark, down more than 15% over the past 24 hours, as volatility spreads throughout global markets Monday. Crypto markets have tumbled on several factors including geopolitical tensions in the Middle East, the delay in U.S. Federal Reserve rate cuts, massive long liquidations, and negative Bitcoin and Ethereum ETF flows.

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Last week MicroStrategy reported that it now holds 226,500 bitcoins at a total cost of $8.3 billion making the stock susceptible to volatility in the price of bitcoin. MicroStrategy's stock is set to begin trading on a 1-for-10 reverse split basis at the market open on Aug. 8. 

According to data from Benzinga Pro, MicroStrategy shares are trading above the stock’s 50-day moving average of $1,538 and 11.46% of shares are being sold short.

Will MSTR Stock Go Up?

When trying to assess whether or not MicroStrategy will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $2181 on MicroStrategy. The Street high target is currently at $2890.0 and the Street low target is $1826. Of all the analysts covering MicroStrategy, 8 have positive ratings, no one has neutral ratings and no one has negative ratings.

In the last month, 2 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering MicroStrategy have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. MicroStrategy is 111.34% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about MicroStrategy, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

MSTR Price Action: According to Benzinga Pro, MicroStrategy shares are down 9.55% at $1,309.71 at the time of publication Monday.

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