MicroStrategy (MSTR) shares have declined by more than 20% over the past five days, coinciding with Bitcoin’s price falling to $72,000. This reflects the strong correlation between the stock price of the world’s largest corporate Bitcoin holder and Bitcoin’s market value. Bitcoin’s sharp drop to $72,000 marks its lowest level since November 2024. During this period, MSTR shares fell nearly 9%, reaching an intraday low of $121.19. Year-over-year, the stock is down about 15%, and from its November 2024 peak, it has dropped approximately 72%.
The significant decline in Bitcoin’s price has impacted the entire cryptocurrency market, leading to negative sentiment and cautious trading as investors watch key technical support levels. Market analysts warn that prices could fall further if demand does not stabilize. In a notable development this week, Canaccord Genuity analyst Joseph Woofy lowered MSTR’s price target from $474 to $185, a reduction of nearly 61%, while maintaining a buy rating. He noted that if volatility decreases and Bitcoin stabilizes, the stock could see substantial gains.
MicroStrategy recently purchased 855 Bitcoins for around $75.3 million, at an average price of approximately $87,974 per Bitcoin. Since then, Bitcoin’s price has declined further, resulting in unrealized losses on the company’s total holdings. The firm now holds 713,502 Bitcoins acquired at an average price of $76,052 each. Market attention remains focused on MicroStrategy’s short-term performance, particularly the upcoming Q4 2025 earnings report expected this week. This report will provide more insight into the company’s capital strategy, Bitcoin acquisition policies, and financial position.
The drop in Bitcoin’s price signals a broader downturn in the cryptocurrency market, which investors and experts are closely monitoring to gauge future trends.
Source: bitcoinmagazine
