The ETF Opportunities Trust T-Rex 2X Long MSTR Daily Target ETF, which tracks the performance of MicroStrategy Inc. (MSTR), is experiencing downward pressure due to several factors impacting its underlying asset. MicroStrategy's stock is closely tied to Bitcoin's performance, given the company's significant Bitcoin holdings. Recent market data indicates a decline in crypto trading volumes, which have dropped 64% to seven-week lows, despite large investors continuing to accumulate positions. This decline in trading activity could be contributing to the pressure on MicroStrategy's stock.
Additionally, the U.S. Federal Reserve's recent hawkish stance, as indicated by a 25 basis point rate cut on December 18, has sent ripples through speculative markets, including cryptocurrencies. The Fed's decision to project fewer rate cuts than previously expected has impacted companies like MicroStrategy, which have benefited from the speculative fervor surrounding Bitcoin. Furthermore, Michael Saylor's cryptic tweet hinting at another potential Bitcoin purchase by MicroStrategy has not yet materialized into a confirmed transaction, leaving investors in anticipation and possibly contributing to the stock's volatility.
The ETF Opportunities Trust T-Rex 2X Long MSTR Daily Target ETF is down 4% in pre-market hours on Monday, December 30, falling to $9.60 as of 7:45 AM ET.