Bitcoin has dropped to less than $84,600, and shares of Strategy (MSTR), the company’s stock, continue to drop in value. BitcoinAfter reaching a high of $126210.50 early in October, the price has dropped by more than 33% within eight weeks. MSTR and BTC both have negative trading over the last year, following record gains in mid-year.
This week, other stocks in the crypto sector have continued to decline. Stocks of the crypto exchange Coinbase Global and Robinhood Markets have both fallen by 4%. Riot Platforms, a Bitcoin mining firm, also saw its stock fall 7% in the past week. Michael Saylor’s Strategy, formerly Microstrategy, has led the institutional investment of BTC for much of the last two years. The huge BTC investment that was once rewarded for its success now appears to be a disaster.
Analysts blame a variety of factors for the recent sell-offs in bitcoins and other cryptos, such as a general risk-off attitude that gripped the markets during this past fall and sent investors to safer investments like bonds and gold. Nic Puckrin is an investment analyst at Coin Bureau and suggests that the current crash resembles the one in August 2024 when BTC dropped from more than $66,000 down to $54,000 within a week. “Now that history is repeating itself, it’s wise to prepare for more volatility,” Puckrin highlighted how the steep drop in prices last year has been followed by recovery and new heights.”
Also Read: Another Major Crash For Bitcoin: What’s Happening This Time?
On the other hand, the analyst still points to some potential catalysts that could rescue both BTC and crypto stocks like Strategy (MSTR). “Risk assets remain attractive in the global macro environment, even if Japan is not included.” he said, noting the growing probability that the US Federal Reserve will cut interest rates in December. “Zoom out and you’ll find that there is still reason to be hopeful despite the panic. If the Fed does indeed cut interest rates, this could spark a short-term stock and crypto recovery, which would help both BTC (Bitcoin) and MSTR.
The company has also sold preferred shares worth $136.1m under the program of its “at-the-market” offering. According to a Monday Form 8-K submitted to the U.S. Securities and Exchange Commission, last week, the company used these proceeds along with cash received from a preferred stock transaction to purchase 8,178 bitcoin. The form states that the company issued three different series of preferred shares under ATM. The company did not sell shares of the Class A MSTR Common Stock.
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Source: watcher.guru
