Silver Volatility Surges as Trump Nominates Fed Chair
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Silver Price Volatility: Following Donald Trump's nomination of Kevin Warsh as Fed chair, the 10-year U.S. Treasury yield rose above 4.27%, causing silver to plunge approximately 30% on Friday, marking its steepest one-day decline since 1980, indicating market sensitivity to interest rate expectations.
- Bitcoin Purchase Hint: MicroStrategy's Executive Chairman Michael Saylor hinted at potential additional bitcoin purchases while raising the dividend on its STRC preferred stock to 11.25% to support further accumulation, demonstrating the company's ongoing confidence in the cryptocurrency market.
- Cloud Expansion Plan: Oracle outlined plans to raise $45 billion to $50 billion in 2026 to fund the expansion of its cloud infrastructure business, indicating the company's ambitious strategy in the cloud computing sector, which could further drive its market share growth.
- Market Sentiment Shift: While retail sentiment towards the SPDR S&P 500 ETF Trust was bearish, sentiment for the Invesco QQQ Trust remained bullish, reflecting investor divergence across different market segments and highlighting the uncertainty and shifts in risk appetite within the market.
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Analyst Views on MSTR
Wall Street analysts forecast MSTR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSTR is 453.17 USD with a low forecast of 229.00 USD and a high forecast of 705.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 143.190
Low
229.00
Averages
453.17
High
705.00
Current: 143.190
Low
229.00
Averages
453.17
High
705.00
About MSTR
Strategy Inc., formerly MicroStrategy Incorporated, is a bitcoin treasury and business intelligence company. The Company provides cloud-native, artificial intelligence (AI)-powered enterprise analytics software to thousands of global customers. The Company’s Strategy ONE platform provides access to AI-powered workflows, unlimited data sources, cloud-native technologies, and performance to speed up time from data to action. Strategy One delivers visualization, reporting, and embedded analytics capabilities across retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications, and the public sector. Its Strategy Mosaic is a universal intelligence layer that provides enterprises with consistent definitions and governance across data sources, regardless of where that data resides or which tools access it. The Strategy Mosaic offers data clarity and connection by eliminating trade-offs between flexibility, control, and speed.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MicroStrategy Doubles Down on Bitcoin Investment
- Bitcoin Holdings Status: MicroStrategy currently holds 712,647 BTC at an average purchase price of $76,037, with Bitcoin trading around $78,000, resulting in unrealized gains narrowing to less than 3%.
- Dividend Increase Strategy: The company raised the dividend on its Series A Perpetual Stretch Preferred Stock (STRC) by 25 basis points to 11.25%, aiming to attract new capital for future Bitcoin purchases, with this yield significantly exceeding typical corporate bonds, reflecting the company's capital hunger.
- Funding Source Analysis: STRC sales have funded over 27,000 BTC since its November launch, becoming the primary engine for the firm's capital raises, highlighting its importance in the Bitcoin investment strategy.
- Market Response and Risks: Despite facing cash flow pressures from high dividend costs, MicroStrategy plans to continue increasing its Bitcoin holdings, indicating that its strategy in response to market volatility is to invest more, demonstrating confidence in Bitcoin's long-term value.
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Cramer Jokes About Bitcoin Crash
- Bitcoin Price Drop: Bitcoin fell below $76,000 on Sunday, marking its worst sell-off since April, with Cramer suggesting Saylor should aim to push the price to $82,500 after checking S&P futures, potentially influencing market sentiment around bullish reversal signals.
- Market Reaction Analysis: Cramer's remarks sparked discussions about short-term price volatility, particularly as some Bitcoin supporters claim a double bottom when prices slightly rebound, which may lead investors to overlook the risks of breaking below $80,000.
- Saylor's Buying Strategy: As the founder of Strategy, the world's largest Bitcoin-holding company, Saylor hinted at potential purchases with a Sunday post stating “More Orange,” although the company has not yet commented on this strategy.
- Stock Performance: Strategy shares rose 4.55% to $149.71 during Friday's trading, despite a year-to-date decline of 1.47%, reflecting short-term market uncertainty and fluctuations in investor sentiment.
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