U.Today – Bitcoin Soars to Record High

Bitcoin surged to a fresh all-time high before slightly declining, with the market anticipating a Federal Reserve interest rate drop later this week.

Bitcoin's price was recently up 1.41% at $103,926, according to CoinMarketCap, after achieving a new record high of $106,554 during early Monday trading. Investors expect the Fed to lower interest rates during its two-day policy meeting, concluding on Wednesday.

MicroStrategy shares rose over 5% in premarket trading, per CNBC data. In 2024, MicroStrategy’s stock is up 547%, significantly exceeding the S&P 500's 26.9% gain, concurrent with Bitcoin reaching all-time highs.

MicroStrategy has accumulated Bitcoin reserves for years, acting as a proxy for the digital currency. With its recent purchase of 15,350 BTC, the company's Bitcoin holding has grown to 439,000 BTC. Bitcoin is currently up over 8% for the month and 145% for the year.

MicroStrategy's MSTR Gains Momentum

MicroStrategy's stock has gained momentum recently, especially after the announcement on Friday that it will join the tech-heavy Nasdaq-100 index later this month. This inclusion, effective Dec. 23, follows MicroStrategy's tremendous rise this year.

Every year, Nasdaq rebalances its Nasdaq-100 index, selecting companies based on market capitalization as of the last trading day of November, alongside liquidity and free-floating share requirements. Gains exceeding 40% in the last three months have raised MicroStrategy's market value to approximately $100 billion, fulfilling a major condition for index membership.

This move also signifies MicroStrategy's inclusion in the well-known Invesco QQQ Trust ETF, which tracks the Nasdaq-100. Consequently, this could lead to passive inflows into MicroStrategy stock, potentially providing a further boost.