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Home Crypto

Microstrategy Shares [MSTR] Hit $1500 Mark, Defying Jim Cramer’s Suggestions

Defying Popular TV Analyst's Predictions, MSTR Stock Bounces Back Powered by Bitcoin Success

Max Porter by Max PorterVerified Author
May 16, 2024
2 min. read
Microstrategy Shares [MSTR] Hit $1500 Mark, Defying Jim Cramer's Suggestions

Key Points

  • Jim Cramer, host of CNBC’s Mad Money, advised against buying MicroStrategy shares for Bitcoin exposure, suggesting direct BTC investment instead.
  • Despite this, MicroStrategy’s stock recorded a significant recovery, possibly due to its inclusion in the MSCI index and Bitcoin’s price increase.

Jim Cramer, the host of CNBC’s Mad Money financial show, recently advised his audience against buying shares in Bitcoin (BTC) exposure company, MicroStrategy. Instead, he recommended they directly invest in BTC.

MicroStrategy’s Stock Recovery

Despite Cramer’s advice, MicroStrategy’s stock (MSTR) experienced an impressive recovery, posting gains of over 15%, double the gains registered by BTC over the same period.

This recovery could be attributed to two main factors. Firstly, the company’s inclusion in the MSCI (Morgan Stanley Capital International) index. This inclusion, described as a ‘big deal’ by Bloomberg ETF analyst Eric Balchunas, could increase MicroStrategy’s visibility and investment opportunities.

Bitcoin’s Influence on MSTR

The second potential catalyst for MSTR’s recovery is the upswing of Bitcoin’s price. This is especially relevant as key technical indicators showed a positive trend on the price charts.

MicroStrategy’s stock price broke above the 20-day Simple Moving Average (SMA), indicating an increase in buyers. This coincided with the day of the MSCI inclusion update. The market closed above $1500 on Wednesday, flipping the market structure bullish on the higher timeframe charts.

Microstrategy Shares [MSTR] Hit $1500 Mark, Defying Jim Cramer's Suggestions Microstrategy Shares [MSTR] Hit $1500 Mark, Defying Jim Cramer's Suggestions Microstrategy Shares [MSTR] Hit $1500 Mark, Defying Jim Cramer's Suggestions

Despite the recovery, the price momentum was still neutral based on the Average Directional Movement (ADX) reading below 20. Therefore, investors should proceed with caution.

MicroStrategy’s stock was up over 100% when compared to BTC’s 50% year-to-date (YTD) performance. However, due to the strong correlation between MSTR and BTC, any further recovery of Bitcoin towards the range-high of $71k could potentially boost MSTR’s price further.

Tags: Bitcoin (BTC)

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