Current Setup Suggests Sharpest Downside Risk in Markets Since April.

Strategy Shares Dip Below Key Moving Average Amid Rising Bearish Sentiment

Strategy Inc. (Nasdaq: MSTR), the largest publicly traded company holding bitcoin on its balance sheet, has seen its shares decline over 14% in the past two weeks, closing Wednesday at $392—falling below the crucial 50-day simple moving average.

This recent price weakness has been accompanied by a notable increase in bearish options positioning. Market Chameleon data shows the one-year put-call skew—a metric tracking the relative demand for protective puts versus bullish calls—has climbed to 3.6%, marking the highest level since mid-April.

The rising skew suggests investors are increasingly paying a premium for downside protection, reflecting concerns about further downward pressure on MSTR stock.

As a major bitcoin proxy stock with holdings of approximately 628,791 BTC valued at $74.7 billion, MSTR’s share price is closely tied to cryptocurrency market sentiment. Its aggressive bitcoin accumulation strategy has drawn investor attention but also amplified volatility risk.

With bitcoin prices struggling and broader macroeconomic uncertainties lingering, the breach below the 50-day moving average signals potential for continued weakness unless market sentiment shifts positively.