MicroStrategy(MSTR.US) could continue its rise after joining the Nasdaq 100 index

MicroStrategy(MSTR.US) rose nearly 6% before the US market opened on Monday. The news that MicroStrategy will be added to the Nasdaq 100 index, which is dominated by technology stocks, will take effect before the market opens on December 23. This may further strengthen MicroStrategy's momentum as funds tracking the Nasdaq 100 may buy more shares.MicroStrategy, an important buyer of Bitcoin, has seen its stock soar nearly 550% this year. According to its latest pre-market price, the company's market capitalization has surpassed $100 billion, more than double the value of its Bitcoin reserves.Since starting to buy and hold Bitcoin in 2020, MicroStrategy has become one of the largest holders of cryptocurrencies, enhancing its stock appeal and often tracking the performance of cryptocurrencies. Data shows that MicroStrategy's stock has risen 3,200% since 2020. Analysts believe that MicroStrategy's decision to buy Bitcoin to protect the value of its reserves is a key factor in its stock appeal.Matthew Dibb, chief investment officer of cryptocurrency asset management company Astronaut capital, said this could be "the beginning of a capital cycle that could push up the price of Bitcoin." He said: "ETFs like the Nasdaq 100 ETF (QQQ) and many other funds will buy MicroStrategy's shares to reflect the Nasdaq 100 holdings, which will push up MicroStrategy's stock price. In turn, MicroStrategy can buy more Bitcoin through bond and stock offerings."Matthew Dibb added: "From a long-term perspective, this is a major milestone for cryptocurrencies. In the coming months, we will definitely hear more bullish and bearish voices, and the discussion of MicroStrategy and its CEO Michael Saylor will become more intense."It's worth noting that analysts at Bernstein predict that in addition to new ETF inflows, MicroStrategy will gain higher visibility and recognition and is likely to be included in the S&P 500 index in the next few years.