Bitcoin Halving Projected to Benefit MicroStrategy as Price Target Soars

The post Bitcoin Halving Projected to Benefit MicroStrategy as Price Target Soars appeared first on Coinpedia Fintech News

The upcoming Bitcoin halving event, scheduled for April 2024, has sparked significant anticipation as market participants expect increased gains. 

Among the primary beneficiaries are Bitcoin bulls, including MicroStrategy led by Michael Saylor, whose 1,52,333 BTC holdings are poised to rise. Additionally, MicroStrategy’s stock (MSTR) is anticipated to follow an upward trend.

Bitcoin Halving Optimism as MicroStrategy’s Bitcoin Holdings Expected to Boost Gains

Berenberg Capital Markets, a New York-based investment firm believes that a significant part of MicroStrategy’s worth comes from its ownership of 152,333 BTC on its corporate balance sheet. This means that if the price of Bitcoin goes up, it could have a big positive impact on the company. 

Berenberg has also made a positive forecast for MicroStrategy, setting a price target of $430 for the company’s shares. Currently, the shares are trading at $407, showing growth of around 180% since the start of 2023. 

The firm expects that Bitcoin’s price will follow its historical pattern and increase before and after the upcoming Bitcoin halving. While many experts predict a bright future for Bitcoin after the halving, some market entities may face challenges.

Historical Patterns Suggest a Pre-Halving Rally for Bitcoin, Berenberg Analysts Say

Berenberg analysts have noticed a trend in the past where the price of Bitcoin increased significantly before and after halving events. During the first halving in 2012, Bitcoin’s price rose from around $12 to a peak of $1,164 within 367 days. The research suggests that the upcoming fourth halving could potentially trigger a pre-halving rally about four months from now.

The analysts believe that the upcoming fourth halving, expected to occur in the future, could lead to another price rally before the event. To understand the potential impact of this rally, they looked at the growing interest in Bitcoin from large investment firms. They found that more asset managers are applying for Bitcoin-related investment products, indicating a greater acceptance of Bitcoin in traditional finance. 

However, if the historical pattern continues, this rally could last until around October 2025. 

Interestingly, there is a strong correlation between Microstrategy’s stock price (MSTR) and the price of Bitcoin is approximately 0.90. This suggests that if Bitcoin experiences a strong rally after the halving, Microstrategy’s stock price may also rise.

Overall, analysts are keeping a close eye on the possibility of a pre-halving rally in Bitcoin, considering its past behavior and the increasing interest from institutional investors.