Two forecasters recently made prognostications that bode very well for Microstrategy (MSTR) stock.

Specifically, crypto forecaster Matt Hougan predicted that Bitcoin would reach the $200,000 mark this year, while renowned Street analyst Tom Lee stated that MSTR showed "signs of being washed out" towards the beginning of April.

MSTR reportedly owned 538,220 Bitcoins as of April 21.

Hougan's Uber-Bullish View on Bitcoin

"This is the first major pullback in history in which Bitcoin has...kept pace with the (stock) indexes," Hougan stated.

As a result of this situation, he believes that "there is a sustained fundamental bid for Bitcoin." And if the markets "normalize," he believes that Bitcoin can eclipse its all-time high around $109,000, before reaching $200,000 by the end of 2025.

Institutional investors, corporations, and governments are all buying Bitcoin, making it impossible for the supply of the crypto to keep pace with the demand for it, he said.

Lee's Comments on MSTR

MSTR dropped to $231 on March 11, and on April 8, a day when investors panicked and "the entire market was crashing," MSTR fell to $236. The fact that it reached a higher low on April 8 than on March 11 suggests that it was "washed out," Lee stated.

While we acknowledge the potential of MSTR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.