The Defiance Daily Target 1.75x Long MSTR ETF (MSTX) closed down 5.85% at $44.08 on January 8, 2025, as MicroStrategy's stock faced significant downward pressure amid a broader crypto market selloff. MicroStrategy's recent strategic partnership with STACKIT to deliver a sovereign data cloud for AI-powered business intelligence failed to boost investor confidence, as concerns over the declining net asset value premium of its Bitcoin holdings persisted. The company's heavy reliance on Bitcoin as a strategic asset has made it vulnerable to fluctuations in the cryptocurrency market, which saw Bitcoin slip below $93K. Analysts have warned of macro headwinds for risk assets, including a hawkish Federal Reserve and rising long-term government bond yields, which have contributed to the bearish sentiment.