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MicroStrategy traded at an 18-month low on Tuesday as cryptocurrency prices continue to fall along with broader financial markets.
According to Nasdaq through TradingView, at the time of writing, shares of Michael Saylor’s software company were trading at $188.50.
That represents a drop of more than 55% over the past month from $427.05 on April 25.
MicroStrategy’s huge bet on bitcoins — she and her organizations currently own 129,218 bitcoins — are now in the red as the average purchase price has fallen below $30,700.
Bitcoin (BTC) was trading at $28,746 at the time of writing, falling below $30,000 on May 12 following the collapse of the TerraUSD (UST) stablecoins. This has spread across the cryptocurrency market, putting downward pressure on all digital assets.
The last time MicroStrategy traded at these levels was on November 9, 2020, when it traded at $183. At the time, Bitcoin (BTC) was trading at $16,410.
However, the software company’s bet on bitcoin is only one of the factors mitigating the fall in the stock price.
Broad financial markets have been shaken by the challenging macroeconomic situation as governments and central banks grapple with the rapidly rising inflation caused by the pandemic.
For example, the U.S. Federal Reserve has pledged to begin reducing its $9 trillion balance sheet from next month to stop rising inflation.
This has led to a decline in most major US stock indices since the beginning of the year. The S&P 500 has lost 18.91%, the Nasdaq Composite 29.50%, and the Dow Jones 13.99% since January.
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