Deep Tide TechFlow News, on December 30, according to CoinDesk, analysts explained the recent stock price trend of MicroStrategy (MSTR) through Soros' Theory of Reflexivity. This theory posits that there is a two-way interaction between investor expectations and prices: optimistic investors drive prices up, and rising prices enable the company to finance at a lower cost, improving performance and further driving up the stock price, creating a positive feedback loop. However, when this loop is disrupted, price adjustments may exceed market expectations.
MicroStrategy (MSTR) stock price has continued to decline after being included in the Nasdaq 100 index, dropping to around $300, nearly a 45% decrease from the historical high of $543 at the end of November, and about a 30% drop from the $430 announced on December 14 after the Nasdaq 100 inclusion. Analysts point out that several market signals suggest MSTR may have formed a short-term peak, including: the company's stock price skyrocketing nearly 8 times this year, founder Michael Saylor frequently appearing and promoting the new 'Bitcoin Yield' metric, and multiple companies beginning to imitate its Bitcoin reserve strategy.
Despite a significant recent correction, MSTR's long-term performance remains impressive. The stock has still risen over 400% this year, with a cumulative increase of 20 times since it began executing its Bitcoin reserve strategy in August 2020. Most analysts believe that MSTR has experienced similar magnitude corrections multiple times in the past three years, but ultimately ended in an increase.