Bitcoin (BTC-USD) rose above $57,000 intraday on Tuesday, the first time the digital asset has reached this milestone in over two years. In 2024 alone, before the Bitcoin halving in April, the cryptocurrency was up almost 30% year-to-date.
Benchmark Managing Director and Senior Research Analyst Mark Palmer joins Yahoo Finance to discuss his long-term predictions for Bitcoin amid rising crypto prices.
When asked which companies are best positioned to take advantage of the crypto asset, Palmer explains: “I just have to go back to MicroStrategy (MSTR) because if you look at the correlation coefficient between Bitcoin and MicroStrategy, it is 0.94 . So if someone can go out and buy Bitcoin in the market, fine, but many institutional investors in particular are not able to do that within their mandates and so this offers an attractive alternative, again on a leveraged basis. There is also a robust options stack around MicroStrategy and the stock itself is marginal, so you can't hedge effectively with a spot Bitcoin ETF, but you can with the capital structure around MicroStrategy.
For more expert insights and the latest market activity, click here to watch this full episode of Yahoo Finance Live.
Editor's Note: This article was written by Nicholas Jacobino
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