The recent cryptocurrency selloff is beginning to deepen, with Bitcoin (BTC-USD), the largest cryptocurrency in the world, trending nearly 4.6% lower today. BTC has now corrected by nearly 10% over the past month.
The Downturn in Crypto
Other popular cryptocurrencies, such as Solana (SOL-USD), Dogecoin (DOGE-USD), and Shiba Inu (SHIB-USD), are faring even worse, with double-digit declines over the past seven sessions. As expected, investor sentiment in crypto-focused stocks such as MicroStrategy (NASDAQ:MSTR), Coinbase (NASDAQ:COIN), Hive (NASDAQ:HIVE) and Marathon Digital (NASDAQ:MARA) is also taking a hit today.
The selloff comes as the Fed’s rate cut path remains uncertain, and the euphoria from the entry of spot-crypto ETFs fades. In fact, numbers from Farside Investors indicate net BTC ETF outflows of around $734 million over the past ten days.
Potential Impact on MSTR Stock
This trend makes MicroStrategy a key crypto stock to watch. The Michael Saylor-led company has accumulated nearly 226,331 Bitcoins so far. Moreover, MSTR has resorted to debt issuance to raise funds for its crypto purchases. While the stock has rallied by nearly 366% over the past year amid buoyant crypto markets, it remains exposed to the risks of a broader downturn in the cryptocurrency market.
At present, short interest in MSTR stands at nearly 21.3%, and the stock is hovering dangerously around its 50-day moving average. Additionally, Canaccord Genuity’s Joseph Vafi lowered his price target on MSTR to $1,826 from $2,047 yesterday. However, the analyst maintained his Buy rating on MSTR.
What Is the Price Target for MSTR?
Overall, the Street has a Strong Buy consensus rating on MicroStrategy, alongside an average MSTR price target of $2,230.33.
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