MicroStrategy (MSTR) stock faces significant pressure, driven by the downturn in Bitcoin's price and broader market fears regarding tightening global liquidity.
Macroeconomic pressure centers on the Bank of Japan (BoJ). The BoJ is widely expected to raise interest rates on December 19. This action could strengthen the yen and reduce liquidity available for risk assets, including cryptocurrencies.
These pressures compound existing concerns over MicroStrategy's strategy. The company recently made large Bitcoin acquisitions at prices exceeding current market value. Consequently, the stock experienced heavy selling pressure, dropping significantly in preceding days.
Despite this short-term volatility, some analysts maintain that financial stability concerns are overstated. They point specifically to the company's long-term strategy.