TD Cowen Predicts Bitcoin Price Rally Fueling MicroStrategy Stock Gains

TD Cowen analyst considers that though MicroStrategy shares have soared to 89% year-to-date, the business intelligence firm could realize a meaningful higher rally. Lance Vitanza predicts that the Bitcoin price could rally later this month, propelling MicroStrategy shares. 

Vitanza considers that MicroStrategy is set for a meaningful higher price, given that its Bitcoin treasury is worth billions of dollars. The TD Cowen analyst added that Bitcoin harbours significant upside potential in May owing to two big catalysts. 

MicroStrategy (MSTR) Stock to Surge Amid Bitcoin Uptrend Momentum

Vitanza expressed optimism that Michael Saylor’s MicroStrategy (MSTR) stock will surge to meaningful heights this year. The analyst indicated in the Monday note that MSTR will leverage thrust from Bitcoin’s uptrend momentum. 

Vitanza’s positive forecast for MicroStrategy arises days after the firm’s quarterly report revealed a $53.1 million net operating loss. The firm took a $191.6 million impairment charge for the crypto asset.

MicroStrategy has yet to adopt the fair value accounting standard for digital assets that would translate quarterly losses into sizable profits. Vitanza observed that MSTR stock rose as Bitcoin sustained since the onset of 2024 to set an all-time high of $$73,737.94 on March 14.

Vitanza, who participated in the just concluded MicroStrategy’s World 2024 forum for the users in Las Vegas, noted the significant positive feedback from customers regarding the legacy software business. The analyst hailed the optimism in the business’s user base that existed long before Saylor oriented the company to acquire billion-dollar Bitcoin. 

Catalysts to Bitcoin and MSTR Stock Rally

Vitanza considers the optimism among the software user base prompts rethinking the upside potential around MicroStrategy’s operating business. The analyst acknowledged that while the MSTR stock is 89% year-to-date, it could scale new heights as Bitcoin garners bullish momentum. 

The analyst highlighted that May 15 is the deadline for institutional investment managers to file Form 13-F. Vitanza holds that if the filing with the Securities and Exchange Commission (SEC) shows more firms acquired the spot Bitcoin exchange-traded funds (ETFs) in the initial quarter, it affirms further institutional acceptance.

Vitanza considers that MicroStrategy stock could rise, propelled by Gary Gensler-led SEC, which is likely rejecting the ether ETF. The dismissal of the bids for spot Ethereum ETF is a positive catalyst for Bitcoin price. 

Vitanza illustrates that rejecting ETH ETF is critical, though Ethereum’s fate would remain undecided until 2025. The analyst considers the rejection would dictate the beneficiary of a substantial capital amount for the declaration of the digital winner.

Vitanza considers that the extent to which Bitcoin emerges as the winner will stimulate incremental demand. The market will likely feel the demand for Bitcoin acutely following the recent Bitcoin halving. 

Bitcoin Market Performance

Meanwhile, Bitcoin at press time 07:09 UTC slid 1.8% in the past 24 hours to exchange hands at $62,460.68, per CoinGecko. Despite Vitanza’s optimism about the price surging of Bitcoin, it is comparatively 15.1% off the all-time high price realized in March. 

Bitcoin trading activity in the last 24 hours approximated $24.644 billion, representing a 19.80% decline from the previous day’s volume. The trading volume signals a recent fall in market activity. 

Bitcoin price has plunged 10.1% in the last 30-day run, as per CoinGecko data. Further scrutiny shows that though the price has been 4.40% in the past seven days, Bitcoin trails the global crypto market, up 5.80%.  

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