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Why is MSTY Down Today After Bitcoin Slump

The Tidal Trust II YieldMax MSTR Option Income Strategy ETF (MSTY) closed down 8.19% at $29.15 on January 7, 2025, as MicroStrategy Inc. (MSTR) shares fell sharply amid a broader decline in Bitcoin prices. MicroStrategy's stock dropped 10.83% to $338.03, heavily influenced by Bitcoin's slump of 4.8% to $97,183.80. The decline in Bitcoin was driven by rising Treasury yields, which pressured risk assets and triggered a selloff in equities, spilling over into the cryptocurrency market. This downturn was compounded by economic data that pushed rates higher, leading to increased market volatility. MicroStrategy's financial health, marked by a low Piotroski F-Score and high Sloan Ratio, further exacerbated investor concerns, despite a strong Altman Z-Score indicating near-term stability. The company's substantial Bitcoin holdings, over 152,000 BTC, remain a double-edged sword, providing a financial cushion but also exposing it to significant volatility.