Post
Topic
Board Economics
Re: MicroStrategy Buys $250M in Bitcoin, Calling the Crypto ‘Superior to Cash’
by
takuma sato
on 24/05/2025, 19:52:03 UTC
So while I like the idea of putting this trade again, I am a little bit cautious given past experiences.
Is good being cautious. While MSTR Woulf benefit from Bitcoin incoming rally we hitting golden cross around month end
MSTR can't keep up with it for now since the treasury market is flowing with new entrants.
That's another advantage Bitcoin has. There can be only one Bitcoin but treasury companies are increasing.

Currently trading below $400

The shorts are stacking up again. Short interest is once again at all time highs, $10b was reported by april 30th, probably more now that Jim Chanos joined the short department. These guys are just getting in line to get squeezed out of the trade as BTC inevitably runs and they are caught off guard, so their hedge (the long BTC part of the trade) will not act as an hedge anymore since their losses will be bigger than the long side of their BTC position. This is what MSTR shorts don't get. It may work temporarily, it may suppress the price, but eventually reality will set in and shorts will be liquidated, creating one of these huge slingshots on the price. People that got out of the trade due being demoralized will FOMO back in, putting fuel into the fire. It will be a virtious cycle but it will require some pain to get all these people riled up thinking their short is being successful, then the BTC price will do the rest.