MicroStrategy, the corporate giant holding the largest Bitcoin reserves, is experiencing a significant uptick on Wall Street. The company’s stock (MSTR) closed Tuesday at $192.20, a 6-month high, and appears poised for a major breakthrough above $200. If past trends hold, Bitcoin’s price may soon follow suit, potentially surging to $70,000 and beyond.

Investors have been increasingly drawn to MicroStrategy stock, with a remarkable 53% recovery in the past month alone. This Bitcoin proxy investment has consistently outpaced BTC price gains since the company adopted its Bitcoin strategy in August 2020.

Over the last four years, MSTR stock has skyrocketed by 1208%, while Bitcoin has increased by 445%. MicroStrategy now ranks second among the top-performing stocks in the S&P 500 over this period. The company’s approach to Bitcoin acquisition is being emulated globally, with Japan’s Metaplanet making similar moves.

10x Research founder Markus Thielen noted that despite MSTR being 44% overvalued compared to Bitcoin, it’s likely to gain further momentum once it surpasses $180. He explained that market makers may need to hedge their short gamma exposure, while hedge funds with $4.6 billion in short positions could face pressure to cover if the price exceeds $180.

This rally could prompt MicroStrategy to raise more debt for additional Bitcoin purchases. Thielen suggests this could create a positive feedback loop, where MSTR’s stock momentum impacts Bitcoin’s price.

Bernstein analysts project that MSTR stock could surge another 64% to $290. Historically, MSTR has been a leading indicator for Bitcoin’s performance. On the monthly chart, Bitcoin is up 14% while MSTR has gained 54%.

As of this writing, Bitcoin is trading at $62,363.54 with a market cap of $1.232 trillion. If it follows MSTR’s trajectory, we could see Bitcoin reach $70,000 and potentially climb even higher.