Strategy Inc. (MSTR) is having a solid Tuesday, riding Bitcoin's (BTC) latest surge as the cryptocurrency market positions itself ahead of what could be a pivotal moment this week.

The Bitcoin Setup

Bitcoin is pushing higher as traders look toward Wednesday's Federal Reserve interest rate decision, hoping for some breathing room after a brutal stretch that saw the cryptocurrency drop nearly 30% from its October high. The question now is whether Bitcoin can reclaim six-figure territory before the calendar flips to 2025.

The Federal Open Market Committee kicked off its meeting Tuesday and will wrap up at 2:00 p.m. Eastern on Wednesday. If you check the CME FedWatch tool, it's telling you what the market already seems to believe: there's almost a 90% chance of a 25-basis-point cut.

Economists are mostly aligned here. The consensus view is that Fed Chair Jerome Powell will deliver the expected quarter-point reduction while telegraphing three more cuts throughout 2026. That kind of easing cycle tends to be good news for risk assets, and Bitcoin definitely falls into that category.

The Bull Case Lives On

Despite the recent turbulence, some analysts aren't backing down. Bernstein sees Bitcoin climbing to $150,000 by the end of next year and approaching $200,000 by late 2027, according to Bloomberg. Standard Chartered is in a similar camp, projecting Bitcoin will hit $150,000 by the close of 2026. That's well above current levels, though notably down from their previous $300,000 forecast.

Strategy CEO Fong Lee is also staying bullish. In a Yahoo Finance interview, he doubled down on the company's long-term Bitcoin commitment, saying selling the holdings would only happen as a last resort. Given that Strategy holds more than 660,000 BTC—making it the largest corporate Bitcoin holder by far—that's a significant vote of confidence.

Of course, that massive position also means Strategy's stock price moves in lockstep with Bitcoin, amplifying both the ups and the downs.

Reading the Charts

MSTR has been all over the map this year, with a 52-week range from $155.61 to $457.22. That's the definition of volatility. Tuesday's action was notable too, with 17.4 million shares changing hands—well above average and suggesting heightened interest.

The stock opened at $181.49, touched a high of $198.39, and found support at $179.92. Closing near the session high is usually a bullish sign, especially if that momentum carries into the next few sessions.

From a technical standpoint, the $200 level is staring MSTR right in the face. That's both a round number and a psychological barrier. Break above it, and the stock could make a run at its 50-day moving average, which would be an encouraging signal for bulls.

On the downside, support likely sits around that $179.92 recent low, with another floor at $155.61—the bottom of the 52-week range. If those levels don't hold, selling pressure could pick up quickly.

Price Action: Strategy shares were up 4.72% at $192.34 at the time of publication on Tuesday.