Strategy Shares Fall Below 50-Day Moving Average as Investors Seek Downside Protection
Shares of Strategy Inc. (Nasdaq: MSTR), the largest publicly traded company holding bitcoin on its balance sheet, have dropped over 14% in the past two weeks, closing at $392 on Wednesday—just below the 50-day simple moving average.
Alongside the price decline, demand for downside protection has surged. The one-year put-call skew—a measure of how much more traders are paying for put options versus call options expiring in one year—rose to 3.6%, the highest level since mid-April, according to Market Chameleon data.
This indicates that investors are increasingly wary of further declines and are willing to pay higher premiums for puts to hedge their positions.
Strategy holds around 628,791 bitcoins valued at approximately $74.7 billion, making its stock a key proxy for bitcoin exposure. While the company’s aggressive bitcoin buying has been a trendsetter for corporates, recent volatility in crypto markets has weighed on the stock.
With shares now below a key technical level, traders are watching closely for signs of whether bearish momentum will persist or if a rebound is on the horizon.
