Strategy’s Stock Takes a Hit as Bitcoin Prices Plummet
Strategy’s stock price has dipped below a crucial support level, mirroring the broader crypto market downturn. As Bitcoin prices slid below $110,000, Strategy’s stock price fell too $297 on Thursday, its lowest as April. This drop represents a 35% decline from its all-time high.
The company’s market cap has shrunk from $129 billion to $84 billion. The crypto market crash has hit Strategy hard. bitcoin’s price has formed a head-and-shoulders pattern, signaling potential further declines.
Bitcoin’s price has also formed a rising wedge on the weekly chart, which could signal the start of a prolonged bear market. This is bad news for strategy, the world’s largest bitcoin holder, with 639,835 coins currently worth $69 billion.
The falling Bitcoin price has also affected Strategy’s premium.The mNAV multiple, a key metric, has dropped to its lowest point this year at 1.195, down from 3.4 in November. This is risky for Strategy as it uses its premium to raise capital for Bitcoin purchases.
Technically, Strategy’s stock price has fallen from $457 in July to $295. It has broken below the $318 support level and is close to forming a death cross, which could lead to further declines. The next support level is at $230,about 25% below the current price.
