Bitcoin Rises with Inflation Fears, Bernstein Sees 176% Gain in Strategy Stock

The 'debasement trade' has returned to the market, with investors shifting their holdings to tangible assets or those with limited supply to protect against a weakening dollar.

This strategy is gaining traction due to concerns about persistent inflation and rising U.S. national debt, which exceeded $40 trillion for the first time in early August.

The price of Bitcoin has risen 21% over the past month, exceeding $80,000 on August 24 for the first time since May.

Analyst Gautam Chugani predicts that if Bitcoin continues to rise and the value of Strategy's high-yield perpetual preferred securities recovers to $100, it may resume active token purchases.

Bernstein reaffirmed its 'Buy' recommendation on Strategy stock (Outperform rating), although lowering its price target from $450 to $350.