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The upcoming Bitcoin (BTC<\/a>) halving is set to blow fresh wind in the sails of Bitcoin-focused stocks such as Michael Saylor founded tech firm MicroStrategy.<\/p>\n In a research note shared with Cointelegraph, New York-based investment firm Berenberg Capital Markets explained its reasons for a bullish outlook on MicroStrategy (MSTR), which Berenberg has given a $430 price target. <\/p>\n According to the analysts, MicroStrategy derives the bulk of its value from the 152,333 Bitcoin it held on its books<\/a> as of June 28, adding that a Bitcoin halving rally could see its shares gain significantly in price. <\/p>\n \u201c[It] is our expectation that the price of Bitcoin will repeat its historical pattern of rallying both ahead of and following each Bitcoin halving.\u201d<\/p><\/blockquote>\n The Bitcoin halving, which is scheduled for April 26, 2024, reduces the BTC issuance rate by 50%, significantly dampening the velocity at which new Bitcoin enters the crypto market.<\/p>\n Last Bitcoin ETF decision deadline: 3\/19\/24<\/p>\n Bitcoin halving estimate: 4\/16\/24<\/p>\n pic.twitter.com\/8zxcp8TQsh<\/a><\/p>\n \u2014 Will Clemente (@WClementeIII) July 10, 2023<\/a><\/p><\/blockquote>\n \u201cIf the historical pattern established by the first three bitcoin halvings continues to play out with the fourth halving, then the pre-halving rally would begin about four months from now,\u201d read the note. <\/p>\n As Berenberg highlights, previous halvings cycles have seen the price of Bitcoin surge by a minimum of 682%. At the time of the first Bitcoin halving on November 28, 2012, the price of Bitcoin hovered around $12. <\/p>\n 367 days later its price peaked at $1,164.\u00a0<\/p>\n The analysts noted that while Bitcoin\u2019s supply treads a \u201cpredetermined path,\u201d the overall demand for Bitcoin that needs to be gauged before anyone could predict the \u201cpotential magnitude\u201d of a future rally. <\/p>\n To measure this, the research looked to the recent surge in spot bitcoin ETF applications<\/a> from some of the world\u2019s \u201clargest and highest-profile\u201d asset managers as proof that institutional adoption of Bitcoin is on the rise. <\/p>\n The investor note also drew attention to the pro-Bitcoin remarks<\/a> made by BlackRock CEO Larry Fink on July 5, where he sounded like \u201ca high-conviction Bitcoin maximalist.\u201d <\/p>\n Related: <\/em><\/strong>Bitcoin supply shock will send BTC price to $120K \u2014 Standard Chartered<\/em><\/strong><\/a><\/p>\n The research report was written by equity analyst Mark Palmer along with associates Matthew Laflash and Hassan Saleem.<\/p>\n Shares of MicroStrategy are currently trading for $408, having gained nearly 180% since the beginning of 2023, according to data<\/a> from TradingView. Meanwhile the price of Bitcoin has increased 84% since the start of the year. <\/p>\n Magazine: <\/em><\/strong>How smart people invest in dumb memecoins \u2014 3-point plan for success<\/em><\/strong><\/a><\/p>\n<\/div>\n\n