Wall Street kicked off the week in a holiday rally, sending the S&P 500 up 0.73%. The Dow Jones Industrial Average climbed a modest 0.16% after early losses, and the Nasdaq Composite surged 0.98%, fueled by heavyweights like Nvidia, Tesla, and Meta Platforms. Investors soaked up the gains , but the crypto market told a different story. Bitcoin struggled, trading at $94,500 as of press time, which is $14,000 below its all-time high set on December 17. MicroStrategy, the ultimate Bitcoin hype train, stumbled hard. Its shares nosedived 8.8% on Monday, a rough debut in the Nasdaq-100 index. For a company that rides or dies with Bitcoin’s price, this wasn’t entirely shocking. MicroStrategy’s billions in Bitcoin: A double-edged sword Despite the Monday setback, MicroStrategy has had a monster year. The company’s stock is up 426% in 2024, making it one of the hottest U.S. tech firms valued over $5 billion. The reason? Bitcoin. The company began stockpiling the crypto in 2020, a gamble that has now inflated its Bitcoin holdings to nearly $43 billion. This crypto obsession pushed MicroStrategy’s market value from $1.1 billion all the way to $82 billion. But here’s the thing: that value exists only as long as Bitcoin stays hot. Bitcoin drops? MicroStrategy drops harder. Monday was a perfect example. Bitcoin slipped to its 50-day moving average, a critical level for traders. What’s weighing on it? Well for starters, the Federal Reserve might slow interest-rate cuts in 2025. Investors are cooling off on risky bets, and Bitcoin, like it or not, is the poster child for speculation. Even with President-elect Donald Trump pushing for looser crypto rules, the market isn’t fully convinced just yet. Trump’s Bitcoin crusade Trump’s victory lit a fire under Bitcoin. The apex crypto has soared 40% since Election Day, with traders betting big on his pro-crypto rhetoric. He has appointed a pro-crypto SEC chair, Treasury Secretary, IRS commissioner, and has even set up a Crypto Council for his White House Crypto Czar. Meanwhile, Bitcoin ETFs have also seen massive inflows since the election win. Over $12 billion has poured into these funds, but the excitement is starting to cool. On December 19, the products recorded their biggest one-day outflow in months, showing us that some investors are taking a breather. But MicroStrategy isn’t slowing down. The company just announced another $561 million Bitcoin purchase, its seventh consecutive week of buying. Meanwhile, the broader crypto market is mirroring Bitcoin’s ups and downs. Ether and DOGE have both doubled in value this year, but they’re still following Bitcoin’s lead. And it has had a 125% rally since the year started. Thin trading volumes could add more volatility this week. U.S. markets will close early today and take a break on Wednesday for Christmas, leaving fewer players to stabilize the game. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.
