Bitcoin Price Momentum Cools, Leading to MicroStrategy and Coinbase Stock Dip
Crypto markets experienced a downturn on Monday following Bitcoin’s inability to sustain its early weekend momentum. However, some stocks are showing signs of recovery as the day progresses.
At 9:45 am ET, Coinbase (COIN) dropped by 4% to $156.63, while MicroStrategy (MSTR), known as the largest corporate Bitcoin holder, saw a 5% decline to approximately $133. Similarly, the Valkyrie Bitcoin Miners ETF (WGMI) also fell by 5% to nearly $16.
In comparison, the S&P 500 remained stable, and the Nasdaq 100 was down by 0.5% at the beginning of Monday’s trading. Bitcoin, after reaching above $60,500 on Saturday, has now slipped below the $58,000 mark, registering a nearly 4% decrease over the past 24 hours.
Coinbase has slightly rebounded to nearly $162, with less than a 1% decrease on the day, while WGMI climbed above $17, reflecting a daily loss of almost 2%. However, MicroStrategy only saw a slight recovery, still down by almost 4% to a current price of $136.
Year to date, Coinbase has underperformed Bitcoin, with a modest 3.5% increase compared to Bitcoin’s 31% surge. CleanSpark (CLSK), which had a strong start to the year, has seen fading interest, causing WGMI to dip into negative territory since January 1.
Conversely, MSTR has surged by 91%, outpacing Bitcoin’s gains during the early March crypto boom. MetaPlanet, a smaller Japanese company, has witnessed a remarkable 544% increase after adopting a Bitcoin strategy inspired by MicroStrategy in April.
Both MetaPlanet and MicroStrategy have intensified their Bitcoin-centric approaches recently. MetaPlanet announced a $2 million BTC purchase last week, while MicroStrategy acquired an additional $1.1 billion in BTC shortly after.
Canaccord Genuity’s Sunday report set a price target of $173 for MSTR, representing a 30% increase from the current price. The target is based on a 20% one-year appreciation to BTC, a 15% software business value increase, and the assumption that the current sum-of-the-parts premium remains unchanged.
DeFi Technologies, a Canadian fintech firm with multiple cryptocurrencies in its portfolio, has surged by 283% this year and showed a 1.5% increase on Monday, defying the bearish trend.
The Federal Reserve is anticipated to announce its first interest rate cut in years on Wednesday, potentially impacting the crypto and stock markets. Futures markets are divided on whether the cut will be 25 or 50 basis points, with growing support for the latter option.
