By December, the leading cryptocurrency could reach $155,000 in an optimistic scenario, according to TD Cowen. In light of this, the investment bank has raised its target price for Strategy (MSTR) shares from $590 to $680, reports The Block.
The base forecast for digital gold is $128,000, while the pessimistic scenario is $55,000.
At the time of writing, the shares had risen by 3.78% to $451.01. The company’s shares have become a sort of proxy bet on Bitcoin, as their price increases with the demand for cryptocurrency.
TD Cowen noted that Strategy intends to continue purchasing digital gold through the issuance of debt and equity securities.
“What began as a defensive strategy to preserve the value of reserve assets has become an opportunistic strategy for accelerated shareholder value creation,” the analysts stated.
The bank mentioned the company’s plan to raise funds for future cryptocurrency purchases. According to TD Cowen’s estimates, by the end of 2027, Strategy will own nearly 900,000 BTC.
Bitcoin’s Current Situation
On July 14, the price of the leading cryptocurrency hit a new all-time high, surpassing $123,000. The rally was influenced by institutional investors, macroeconomic conditions, and the trend of incorporating Bitcoin into corporate reserves, said Kirill Khomyakov, head of regional markets at Binance in the CIS, Central and Eastern Europe, and Africa.
At the time of writing, the price of digital gold had fallen by 5%. The asset is trading at $116,930, according to CoinGecko. However, over the week, its price has risen by 8%, and over the month, by 11%.
Lack of Euphoria
João Vedson, founder of Alphractal, noted that the spot price of Bitcoin on Binance remains above the price of perpetual futures. This indicates a lack of euphoria in the derivatives market.
Meanwhile, the negative gap between the indicators is steadily narrowing, the expert emphasized. This trend suggests a shift in investor sentiment—from cautious accumulation to growing optimism.
Historically, the transition of the indicator into the “green zone,” when futures prices exceed spot prices, preceded a parabolic rally in Bitcoin. Often, such growth was driven by the active use of leverage and the fear of missing out in the derivatives market.
According to Vedson, the current situation rather indicates a preparatory stage, not a phase of market euphoria. The transition of the indicator into the positive zone could trigger a stronger and more aggressive upward trend.
Back in April, TD Cowen analysts stated that billion-dollar acquisitions of digital gold by Strategy had virtually no long-term impact on its value.