An optimistic forecast for 2025 about both Bitcoin and MicroStrategy (Nasdaq: MSTR) has been revealed by popular crypto analyst Matt (@matt_utxo). According to Matt, MicroStrategy’s stock is at the bottoming stage after the massive crash from the high of $540 in November 2024. He expects the stock to stabilize between $270 and $300, with a brief dip to around $250.
He points out signs of strength in the $270-$300 range, which may indicate that this could be a buying opportunity. With Bitcoin’s performance expected to improve, Matt is expecting a strong recovery for MSTR, especially in the first quarter of 2025.
According to Matt, the stock of MSTR is falling hard, mainly due to what he terms the “popping bubble” and a reverse gamma squeeze. The stock had decoupled from Bitcoin when the latter was rallying and was now correcting.
Traders unwinding positions and broker-dealers selling shares had also added to the pressure, but this downtrend may be coming to an end. Positive technical indications, such as a bullish divergence on the relative strength index, suggest that the price of MSTR could consolidate and then bounce back.
A major driver for MSTR’s future performance will be Bitcoin, which Matt believes is entering a historically strong period after its 2024 halving. Most people expect Bitcoin to reach about $80,000, but Matt is even more optimistic in his predictions: he believes that Bitcoin could break above $100,000 in January and then hit $125,000 by February. This is in line with Bitcoin’s seasonal strength and positive market sentiment.
Matt also emphasizes several significant events that could be felt both on Bitcoin and MSTR in the coming months. Starting in January, $16 billion in FTX repayments may flood the market with liquidity, increasing prices.
The U.S. debt ceiling is expected to expire on January 1, causing short-term discomfort but potentially rebounding quickly in the market. Additionally, the potential inclusion of Bitcoin-related assets in the SP 500 and the implementation of FASB rules in mid-2025 could bring institutional interest to both Bitcoin and MSTR.
Overall, Matt expects increased volatility for MSTR in 2025 but believes the company’s strategy of acquiring more Bitcoin could strengthen its balance sheet and drive its stock price higher as global macroeconomic trends favor Bitcoin’s growth.
