A certain asset management company CEO recently put forward an interesting viewpoint: Strategy (MSTR) has now become the most critical hedging tool in the crypto market.

Look at its stock price plunging 43%—the underlying logic is actually quite simple: institutions are directly using it as a "pressure release valve" for Bitcoin. Why? Strategy holds 650,000 Bitcoins, and the liquidity at that scale is much better than BTC or ETH derivatives.

Here’s the problem: when crypto market liquidity dries up and market makers are battered, institutions simply can’t hedge on-chain. So what do they do? They turn to shorting MSTR. In plain terms, it’s currently the most convenient "Bitcoin shorting tool."

This move essentially reflects a fact: the traditional financial hedging logic has already permeated the crypto market, and MSTR happens to be the bridge connecting the two worlds.

BTC2.63%

ETH1.72%

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FOMOmonster

· 16h ago

mstr has really been played to death, it's just an ATM Wait, so are we retail investors buying Bitcoin or are we just being used as punching bags by the short positions? Hmm... the tricks of TradFi are still so insidious, just changing the shell to continue playing people for suckers Speaking of which, having 650,000 btc in one stock is a bit risky This is what web3 should look like, directly bringing over the tricks of traditional finance Is it a monster born from the marriage of trad and crypto, haha Shorting mstr = shorting Bitcoin, so that's how it is... learned something Wait, then what are retail investors supposed to do, just getting hit from both sides?

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