MicroStrategy shares plunged 11 percent on Thursday, closing at $289.41 — a drop of more than $35 in a single trading day. The sharp decline raised concerns among investors about the strength of Bitcoin, the company’s core asset, which remained stable just above $83,000.
The software company, known for its massive Bitcoin holdings, experienced a steeper fall than the cryptocurrency itself. While MicroStrategy lost nearly 11 percent in value, Bitcoin fell just 1 percent, maintaining its position at $82,981 by the end of the month. March ended where it began for Bitcoin, providing no net gains for holders.
MicroStrategy’s market capitalization stood at $75.95 billion after the drop. The stock traded between $289.25 and $320.80 during the day and saw a slight recovery in after-hours trading, rising 0.63 percent to $291.23.
Investor Jitters and Insider Activity
The drop in MicroStrategy’s stock was partly attributed to reports of insider selling, which heightened anxiety in the market. Traders also expressed concern about the broader tech sector and the cryptocurrency market, where trading volume has plunged by 45 percent. The volume decline suggests diminishing activity and interest, often a precursor to price instability.
MicroStrategy’s price moves are closely tied to Bitcoin’s performance, as the firm owns more than 140,000 BTC. But the latest divergence — with the company’s stock sliding sharply while Bitcoin remained relatively steady — has prompted speculation that Bitcoin could be next to decline.
Bitcoin Faces Mounting Pressure
Bitcoin is now approaching a key support level of $80,000, with some analysts forecasting a further drop to $78,000 in April. Despite Bitcoin’s flat performance in March and recent bearish chart patterns, sentiment among retail traders remains strong. According to CoinMarketCap, 82 percent of users say they remain bullish on Bitcoin’s future trajectory.
Meanwhile, larger macroeconomic forces are also influencing the outlook. Bitcoin recently retreated from near $90,000 amid renewed inflation concerns and tariff threats from President Donald Trump. Uncertainty over a new cyber threat has added to the pressure.
Still, some see potential upside. Arthur Hayes, cofounder of BitMex, pointed to a shift in tone from Federal Reserve chair Jerome Powell as a possible bullish signal. “There was a seminal change in [Powell’s] tone at the last Fed board meeting,” Hayes said. He described the Fed as “teasing” a return to stealth quantitative easing, which could inject liquidity into markets.
Markus Thielen, founder of 10x Research, noted that Bitcoin may be forming a bottom. In a note to clients, he said the combination of Trump’s softening tariff stance and the Fed’s dovish posture “is setting bitcoin up for a recovery.”
