{"id":5227,"date":"2025-01-02T07:01:06","date_gmt":"2025-01-02T07:01:06","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=5227"},"modified":"2025-01-02T07:01:06","modified_gmt":"2025-01-02T07:01:06","slug":"bitcoin-leveraged-play-microstrategys-bullish-call-skew-disappears-in-cautious-market-sentiment","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=5227","title":{"rendered":"Bitcoin-Leveraged Play MicroStrategy’s Bullish Call Skew Disappears in Cautious Market Sentiment"},"content":{"rendered":"
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Traders are no longer chasing upside in Nasdaq-listed MicroStrategy (MSTR), a leveraged play on bitcoin (BTC), signaling a cautious shift in market sentiment.<\/p>\n

MSTR’s 250-day put-call skew, which shows the difference in implied volatility between puts (options to sell) and calls (options to buy), has bounced to zero from -20% in three weeks, according to a data tracking website Market Chameleon<\/a>.<\/p>\n

It means that call options, which traders use to achieve asymmetric upside gains from a potential rally in the underlying asset, are now trading at parity with puts that offer downside protection rather than the unusually high premium observed three weeks ago.<\/p>\n

In other words, the sentiment has flipped to neutral from uber-bullish.<\/p>\n

The change comes as MSTR’s share price has declined by over 44% to $289 since hitting a record high of $589 on Nov. 21, with valuation dropping 34% in the past two weeks alone, according to data source TradingView.<\/p>\n

“With MicroStrategy shares now down 44% from their peak and other companies adopting bitcoin as a treasury asset strategy at a much smaller scale, the bitcoin tailwind generated by this narrative appears to be losing steam,” Markus Thielen, founder of 10x Research<\/a>, said in a note to clients.<\/p>\n

MicroStrategy began adding bitcoin to its balance sheet in 2020 and has since accumulated 446,400 BTC ($42.6 billion), often financing the purchases with debt sales. MSTR, therefore, is seen as a leveraged bet on BTC in 2024 and ended 2024 with a 346% gain, outshining BTC’s 121% rise by leaps and bounds.<\/p>\n

However, the end-of-year action was disappointing. While MSTR fell by 25% in December, BTC fell by only 3%, holding relatively steady above $90,000.<\/p>\n

Its a sign MSTR’s appeal as a leveraged bet on BTC is weakening.<\/p>\n

“The stock\u2019s underperformance, despite substantial bitcoin acquisitions, indicates that investors are no longer willing to pay an implied price of $200,000 (or more) per bitcoin through MicroStrategy when it can be purchased directly at a much lower cost,” Thielen noted.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Traders are no longer chasing upside in Nasdaq-listed MicroStrategy (MSTR), a leveraged play on bitcoin (BTC), signaling a cautious shift in market sentiment. MSTR’s 250-day put-call skew, which shows the difference in implied volatility between puts (options to sell) and calls (options to buy), has bounced to zero from -20% in three weeks, according to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-5227","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/5227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5227"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/5227\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}