April 13, 2024

Can crypto keep the rally going?

Bitcoin (BTC-USD) surged past $57,000 intraday on Tuesday, the first time the digital asset has sat at that milestone in over two years. The cryptocurrency has rallied almost 30% year-to-date in 2024 alone, ahead of the bitcoin halving event in April.

Benchmark Managing Director and Senior Research Analyst Mark Palmer joins Yahoo Finance to discuss his long-term forecasts for bitcoin as crypto prices surge.

When asked what companies are best positioned to leverage the crypto asset, Palmer explains: “I have to come back to MicroStrategy (MSTR) simply because if you look at the correlation coefficient between bitcoin and MicroStrategy, it’s 0.94. So if someone can go out and buy bitcoin in the market, fine, but many institutional investors in particular do not have the ability to do that under their mandates and so this offers an attractive alternative and again, on a levered basis. There’s also a robust option stack around MicroStrategy and the stock itself is marginable, so you can’t hedge effectively with a spot bitcoin ETF, you can hedge very effectively with the capital structure around MicroStrategy.”

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s note: This article was written by Nicholas Jacobino

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