Zinger Key Points
- MicroStrategy's stock is heavily influenced by Bitcoin's price fluctuations, as the company holds a large amount of Bitcoin.
- Recent Bitcoin market weakness and uncertainty around crypto regulations have led to declines in both Bitcoin and MicroStrategy's stocks.
- Feel unsure about the market’s next move? Copy trade alerts from Matt Maley—a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now.
MicroStrategy Incorporated MSTR shares closed down Wednesday, due to a decline in Bitcoin's BTC/USD price, which dropped 1.73% to $104,313.65.
What To Know: Bitcoin transaction volume over $100,000 decreased by 15%, while netflows dropped 307%, signaling a possible cooling of market activity. Over $161 million in liquidations occurred in the past 24 hours, which put additional pressure on the market.
While BlackRock clients facilitated the purchase of $600 million in Bitcoin via an ETF, market sentiment remains cautious due to the nature of these transactions.
Bitcoin's liquidity is concentrated between $96,000 and $111,000, with support levels between $88,000-$95,000. If these levels fail, Bitcoin could drop further, potentially impacting MicroStrategy's stock as well.
Despite the short-term volatility, Bitcoin’s overall bullish trend remains intact as long as it stays above $58,000, which provides some stability for MicroStrategy.
Why It Matters: For MicroStrategy, the company's heavy exposure to Bitcoin potentially means its stock is especially sensitive to Bitcoin's price. The company also recently received shareholder approval for a proposal to increase its share count, which could lead to more Bitcoin purchases in the future.
MSTR Price Action: Microstrategy shares closed Wednesday down 3.03% at $377.31, according to Benzinga Pro.
Read Next:
Image Via Shutterstock.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
