Bitcoin halving bullish for Saylor’s MicroStrategy: Berenberg Capital

Analysts predict that Bitcoin's next pre-halving rally could begin within the next four months. The upcoming Bitcoin halving event is expected to have a positive impact on Bitcoin-focused stocks, including MicroStrategy.

Berenberg Capital Markets, a New York-based investment firm, has expressed a bullish outlook on MicroStrategy (MSTR) and set a price target of $430. The firm attributes much of MicroStrategy's value to the 152,333 Bitcoins it holds on its balance sheet as of June 28. They believe that a Bitcoin halving rally could lead to a significant increase in the price of MicroStrategy's shares.

The Bitcoin halving event, scheduled for April 26, 2024, reduces the rate at which new Bitcoins are issued by 50%. This reduction in supply can potentially drive up the price of Bitcoin.

Berenberg notes that previous Bitcoin halvings have resulted in significant price surges, with the price of Bitcoin increasing by a minimum of 682%. For example, following the first halving in November 2012, the price of Bitcoin rose from around $12 to a peak of $1,164 within 367 days.

While the supply of Bitcoin follows a predetermined path, the demand for Bitcoin plays a crucial role in determining the potential magnitude of a future rally. The research points to the increasing interest in Bitcoin from institutional investors, as evidenced by the surge in spot Bitcoin ETF applications from major asset managers. This suggests that institutional adoption of Bitcoin is on the rise.

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