MSTR stock surged nearly 9% in after-hours trading on Friday as Bitcoin approached the $70,000 mark, fueled by softer-than-expected U.S. inflation data. The latest Consumer Price Index (CPI) report showed inflation cooling to 2.4%, the lowest level in four years, with consumer prices rising just 0.2% month-over-month. The easing inflation pressure boosted expectations of potential Federal Reserve rate cuts, driving renewed risk appetite across financial markets.
The rally in Bitcoin price triggered strong gains in crypto-related stocks. Coinbase shares jumped 16.5%, while Marathon Digital and Riot Platforms climbed 9% and 7%, respectively. The synchronized move highlights the growing correlation between Bitcoin and MSTR stock, as MicroStrategy remains one of the largest corporate holders of BTC.
Market analysts are now debating how high MSTR stock could climb in the current cycle. Popular trader Kaleo compared the current market structure to the 2021-2022 bull run, suggesting that if Bitcoin maintains its bullish momentum, MSTR could retest its all-time high and potentially surge toward the $1,000 level. Other projections are more conservative. Analyst BigBullMike identified a possible price target near $340 based on wave D technical analysis.
Some traders are also watching for signs of a cycle bottom. Analyst Ted noted that during the previous market cycle, MSTR stock bottomed when the weekly Relative Strength Index (RSI) dropped below 30 after roughly 65 weeks. With the current cycle in its 66th week and RSI recently dipping under 30, speculation about a potential bottom is increasing, though confirmation requires sustained price strength.
Michael Saylor recently confirmed that the company has raised billions in capital to continue buying Bitcoin and has no plans to sell despite unrealized losses. Meanwhile, Bitcoin is forming a bullish “Adam and Eve” pattern, with a break above $72,000 potentially opening the door to $80,000. At the time of writing, BTC trades near $69,789, up 1.13% in the past 24 hours.
