Analyst: MicroStrategy's stock price shows technical divergence after BTC hits a new high, implying that a virtuous cycle may have been broken.

ChainCatcher news, according to CoinDesk, analysts explain the recent stock price trend of MicroStrategy (MSTR) through the Theory of Reflexivity proposed by Soros. The theory holds that there is a two-way interaction between investor expectations and prices: investors' optimism drives the stock price to pump, the pumped stock price allows the company to finance at a lower cost, improve performance, and further boost the stock price, forming a virtuous cycle. However, when this cycle is broken, price adjustments may exceed market expectations. The stock price of MicroStrategy (MSTR) has been continuously declining after being included in the Nasdaq 100 Index, falling to as low as $300, a nearly 45% drop from its historical high of $543 at the end of November. This is also approximately a 30% drop from $430 after the Nasdaq 100 inclusion announcement on December 14. Analysts point out that multiple market signals suggest that MSTR may have formed a short-term top, including: the company's stock price soaring nearly 8 times this year, founder Michael Saylor frequently appearing and promoting the new indicator 'Bitcoin Yield', and several companies beginning to emulate its Bitcoin reserve strategy. Despite the recent significant pullback, the long-term performance of MSTR is still impressive. The stock has still pumped more than 400% this year, and has risen 20 times since it began implementing the bitcoin reserve strategy in August 2020. Most analysts believe that MSTR has experienced similar pullbacks in the past three years, but ultimately ended up pumping.