Amid renewed interest rate cuts and Donald Trump’s recent presidential victory, tech stocks tied to Bitcoin, including MicroStrategy (MSTR), have soared to new highs. MSTR shares surged nearly 20% over the past five days, currently trading on Nasdaq at $271.26. Over the past year, MicroStrategy’s shares have skyrocketed by a remarkable 486%, mainly due to its substantial Bitcoin reserves.
Founded by prominent Bitcoin advocate Michael Saylor, MicroStrategy has amassed over 250,000 Bitcoin, currently valued at around $19 billion. Further expanding its Bitcoin-backed strategy, the company recently announced an ambitious goal to acquire an additional $42 billion worth of Bitcoin by 2027.
MicroStrategy Soars as Bitcoin Hits All-Time High
Following Trump’s re-election, Bitcoin reached new heights, climbing over 10% to trade around $76,600 on November 8. This rally signals investor optimism in a more crypto-friendly economic landscape and continues to draw attention to Bitcoin-linked stocks, which are seeing substantial gains across the board.
The rally wasn’t limited to MicroStrategy. CleanSpark (CLSK), a prominent Bitcoin mining company, posted a 35% increase in stock price over the week. Meanwhile, crypto exchange giant Coinbase (COIN) — a significant contributor in the recent US election — saw its shares jump more than 48%.
Fed Cuts Fuel Broader Market Optimism
Investor confidence has been further bolstered by the Federal Reserve’s recent rate reductions. In September 2024, the Fed cut interest rates by 0.5 percentage points for the first time in over four years. Another reduction followed on November 7, lowering the federal funds rate to a range of 4.5% to 4.75%. These cuts, combined with Trump’s anticipated economic policies, have boosted investor sentiment, reflected in the broader market’s rally. The S&P 500 climbed 5% this week, while the Dow Jones saw a 4.8% increase, underscoring a renewed sense of optimism in both traditional and crypto markets.
