Investors wondering what’s next for shares in business intelligence firm MicroStrategy following this year’s 343% surge may want to look at what 10x Research, led by Markus Thielen, who predicted this year’s BTC rally, is saying.Per 10x’s latest research note, MSTR’s shares appear overvalued by 26%.The conclusion is based on the firm’s regression model, studying the relationship between the dependent variable, MSTR, and the independent variable, BTC’s spot price.”As the regression model shows, MicroStrategy is +26% overvalued and has a 20% downside based on the current Bitcoin prices.It is time to take profit,” 10x said.Shares in bitcoin-holder MSTR have more than quadrupled this year, reaching a 25-month high of $673 on Wednesday to become one of the best-performing crypto-related stocks of 2023.The Nasdaq-listed firm holds 189,150 BTC as of writing, having begun accumulating the [cryptocurrency](http://pubads.g.doubleclick.net/gampad/clk?id=5703845201&iu=/7138/FXS30) as a reserve asset three years ago.
[Bitcoin](http://pubads.g.doubleclick.net/gampad/clk?id=5703293170&iu=/7138/FXS30), the leading cryptocurrency by market value, has gained 160% this year, with prices surging 60% this quarter alone, mainly on the back of the spot ETF narrative.The performance of crypto-related stocks like MSTR and shares in Coinbase relative to Bitcoin is often touted as a proxy for institutional interest in digital assets.These listed instruments allow market participants to gain exposure to digital assets without having to own them.The upward sloping line shows positive linear relationship between the two assets.(10x Research) (10x Research) The [chart](https://www.fxstreet.com/rates-charts/chart) shows the upward-sloping (green) line of best fit drawn through a maximum number of points on a scatter plot, ensuring almost an equal number of points above and below the line.
The upward-sloping nature of the line shows a positive relationship between bitcoin and MSTR.In other words, as the price of BTC goes up, MSTR’s market value rises.The R² (R-squared or the coefficient of determination) of 0.8232 indicates that 80% of the variation in MSTR can be explained by BTC’s price.
The analysis shows that at Thursday’s closing price of $673, MSTR is overvalued by 20% relative to bitcoin’s going market rate of around $43,000.
According to 10x, several crypto-related stocks are trading at close to fair value based on bitcoin’s price.”We suggest taking profit and cutting long positions.HIVE, HUT, and GALAXY still offer some value here, but the BIG money has been made in those stocks,” 10x said.All writers’ opinions are their own and do not constitute financial advice in any way whatsoever.Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities.CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.[Join Telegram](https://t.me/fxstreetcrypto) Follow us on Telegram Stay updated of all the news Recommended Content Editors’ Picks [Binance Coin Price Forecast: BNB buying opportunity before $400](https://www.fxstreet.com/cryptocurrencies/news/binance-coin-price-forecast-bnb-buying-opportunity-before-400-202312280528) [](https://www.fxstreet.com/cryptocurrencies/news/binance-coin-price-forecast-bnb-buying-opportunity-before-400-202312280528) Binance Coin has registered a 24% rally this week, rallying from $264 to $327, where it currently trades.BNB currently tugs with the Momentum Reversal Indicator’s (MRI) resistance level at $322.
Additionally, the Binance-based altcoin will face the range high at $337, which has been a key hurdle since it was first formed in May 2022.[More Binance Coin News](https://www.fxstreet.com/cryptocurrencies/news?q=BinanceCoin&hPP=15&idx=FxsIndexPro&p=0) [This is how one Ethereum hard fork in 2023 changed the DeFi market forever](https://www.fxstreet.com/cryptocurrencies/news/this-is-how-one-ethereum-hard-fork-in-2023-changed-the-defi-market-forever-202312280314) [](https://www.fxstreet.com/cryptocurrencies/news/this-is-how-one-ethereum-hard-fork-in-2023-changed-the-defi-market-forever-202312280314) With the year coming to an end, the DeFi market is also locking in the changes witnessed throughout 2023.One key change was the Ethereum Shapella hard fork that not only impacted the market but seemingly altered the face of the Decentralized market entirely.[More Cryptocurrencies News](https://www.fxstreet.com/cryptocurrencies/news) [Ethereum Price Prediction: ETH will likely rally to $2,550 following recent bullish breakout](https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-prediction-eth-will-likely-rally-to-2-550-following-recent-bullish-breakout-202312280133) [](https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-prediction-eth-will-likely-rally-to-2-550-following-recent-bullish-breakout-202312280133) Ethereum validated the inverse head and should formation, a known bullish pattern.On the short-term timeframe, ETH is likely set to witness another 5% growth to meet the target price set by the pattern.Indicators also suggest room for further increases.[More Ethereum News](https://www.fxstreet.com/cryptocurrencies/news?q=&hPP=15&idx=FxsIndexPro&p=0&dFR%5BTags%5D%5B0%5D=Ethereum) [MATIC, OP, ARB: Layer 2 tokens play catch up as attention shifts from Solana to Ethereum](https://www.fxstreet.com/cryptocurrencies/news/matic-op-arb-layer-2-tokens-play-catch-up-as-attention-shifts-from-solana-to-ethereum-202312280200) [](https://www.fxstreet.com/cryptocurrencies/news/matic-op-arb-layer-2-tokens-play-catch-up-as-attention-shifts-from-solana-to-ethereum-202312280200) Coming on the back of shifted attention from Solana to the Ethereum blockchain, L2 tokens, including MATIC, OP, and ARB are rising.MATIC is up 5% while OP and ARB are up 15%, flanked with tenfold trading volume surges, pointing to interest among traders.
[More Cryptocurrencies News](https://www.fxstreet.com/cryptocurrencies/news) [Bitcoin: BTC readies for home run in 2024 with two bullish fundamentals on tap](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-annual-forecast-btc-readies-for-home-run-in-2024-with-two-bullish-fundamentals-on-tap-202312211700) [](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-annual-forecast-btc-readies-for-home-run-in-2024-with-two-bullish-fundamentals-on-tap-202312211700) Bitcoin (BTC) price has been bullish in 2023, scaling up as it tried to plough back the ground lost following the Terra (UST) and FTX crashes of the preceding year.The trajectory took shape in spite of it being an eventful year, with BTC riding the wave of macroeconomic as well as industry-related developments.[Read full analysis](https://www.fxstreet.com/cryptocurrencies/news/bitcoin-price-annual-forecast-btc-readies-for-home-run-in-2024-with-two-bullish-fundamentals-on-tap-202312211700).
