Originally published on: November 08, 2024
The stock market is experiencing one of its strongest performances of the year after Donald Trump’s election win and recent interest rate cuts. Tech stocks like MicroStrategy (MSRT) have surged to a 52-week high as a result.
At the time of writing, MSTR shares are trading at $271.26 on the Nasdaq, marking a nearly 20% increase over the past five days. The enterprise analytics and mobility software company has seen its shares climb 486% in the last year, largely due to its innovative Bitcoin reserves strategy.
Founded by Bitcoin advocate Michael Saylor, MicroStrategy currently holds a significant portfolio of over 250,000 Bitcoin, valued at over $19 billion. The company has unveiled plans to purchase $42 billion worth of Bitcoin by 2027.
Following Trump’s election, the cryptocurrency market has surged, with Bitcoin prices reaching an all-time high of over $76,600 on November 8. This spike has benefited other Bitcoin-related stocks, such as CleanSpark (CLSK) and Coinbase (COIN), which have seen significant increases in their stock prices.
Investor confidence has been boosted by expectations of a more favorable economic climate under Trump’s reelection and additional interest rate reductions by the Federal Reserve. The Fed recently cut interest rates by 0.25 points, bringing the federal funds rate to 4.5% – 4.75%.
Overall, the market is responding positively, with the S&P 500 up 5% and the Dow Jones gaining 4.8% in the same week. This signals growing confidence among investors as they navigate the evolving financial landscape.
Don’t miss out on the latest trends in blockchain and crypto! Subscribe to our Crypto Biz newsletter for a weekly snapshot of key business insights to help you stay ahead of the curve. Gain valuable information to make informed decisions and spot financial opportunities. Delivered every Thursday, subscribe now to unlock a world of possibilities in the digital economy.
