12/30

Why is MSTU Down Today After Bitcoin Drop

The ETF Opportunities Trust T-Rex 2X Long MSTR Daily Target ETF (MSTU) closed down 16.4% at $8.36 on December 30, 2024, as MicroStrategy's stock faced significant pressure due to a decline in Bitcoin prices. Bitcoin, trading around $92,500, has dropped from its recent highs, impacting MicroStrategy, which has heavily invested in the cryptocurrency. The company's aggressive acquisition strategy, including a recent purchase of 2,138 bitcoins for $209 million, has contributed to the stock's volatility. MicroStrategy's inclusion in the Nasdaq-100 Index has not shielded it from bearish market sentiment, with the stock plummeting approximately 30% since the announcement. The negative divergence between Bitcoin's price movements and MicroStrategy's stock performance has raised concerns among investors, further exacerbated by profit-taking activities. Additionally, U.S. spot Bitcoin ETFs experienced a net outflow of $379 million last week, reflecting broader market caution towards high-risk assets.