US crypto stocks like MicroStrategy are starting the week on a positive note after Bitcoin (BTC) rose above $72,000 for the first time since mid-March as the Bitcoin halving approaches around April 20.
The Bitcoin halving is just around the corner, analysts are sure
According to benchmark analysts like Mark Palmer, crypto-related stocks like MicroStrategy (MSTR) will continue to rise ahead of the Bitcoin halving later this month. CoinDesk writes this based on a report.
Palmer is currently considered the most positive analyst. Following the Bitcoin rally last Monday, the analyst revised his price forecast from $990 to $1,875. He has now officially set the highest expectation of the five analysts surveyed by CoinDesk.
“Our new price forecast for MSTR stock is based on the assumption that the Bitcoin price will reach $150,000 by the end of 2025,” Palmer wrote in a letter to his clients.
MicroStrategy’s value is highly correlated with that of Bitcoin. The company owns a huge amount of BTC.
Crypto-related stocks are currently performing well
At market open on Monday, shares (MSTR) rose 5.8%, helped by a 3.4% increase in the price of Bitcoin to $71,791.
Coinbase (COIN), the only U.S.-operated cryptocurrency exchange, rose 4.9% in premarket trading, while MicroStrategy, the largest Bitcoin holder of all U.S.-listed companies, rose 10%.
BlackRock’s Bitcoin exchange-traded fund rose about 6.5%. The CoinDesk 20 Index, a gauge of the broader crypto market, rose 3.1% in 24 hours.
From software company to Bitcoin Maxi
Palmer said he believes MicroStrategy will continue to make capital injections and take every opportunity to get money out of its software business to stock up on Bitcoin. Palmer estimates that the company will own approximately 298,246 Bitcoins by the end of 2025.
Palmer therefore believes that shareholders can benefit significantly from the upcoming Bitcoin halving, which is expected to take place at the end of April. Particularly due to new accounting standards that allow companies to adjust their crypto assets on the balance sheet based on current valuations.
MicroStrategy almost 1:1 with Bitcoin
The correlation between MicroStrategy shares and Bitcoin so far this year is 0.96, while a value of 1.00 would mean it would be 1 to 1. Meanwhile, the correlation between MicroStrategy shares and the SPDR S&P Software and Services ETF XSW, which MicroStrategy is a part of, is 0.53.
MicroStrategy shares are up 140.9% this year through Friday, while the software ETF is up 1.1%, Bitcoin is up 71% and the S&P 500 index SPX is up 9.3%.
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