Bitcoin breaks down as bond yields spike — short the leveraged crypto proxy
Bitcoin investors are panicking and pulling billions out of Bitcoin funds as expectations for interest rates rise. This is crushing companies tied closely to Bitcoin's price, specifically 'Strategy' (formerly MicroStrategy), which just had another terrible month as its leveraged Bitcoin bets sour.
Idea
Bitcoin ETFs just saw record outflows of $1.8B in a week as the Fed signals potential rate hikes, forcing BTC to cling to support. Meanwhile, US Treasury yields are actively rising, which historically crushes risky, non-yielding assets like crypto. Because Strategy (MSTR) acts as a leveraged proxy for Bitcoin and has already lost 41% this month, the combination of rising yields and Bitcoin weakness suggests another leg lower for the stock.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| BTC | SHORT | +2.63% ✗ | +6.74% ✗ | — |
Price change since publication · updated Jul 11
Key details
Community
News sources
- Strategy heads for eleventh losing month in twelve as bitcoin weakness continues — CoinDesk
- Bitcoin clings to key support level as weekly US spot ETF outflows hit $1.8B and Fed rate hike bets mount: analysts — The Block
- U.S. Treasury yields edge higher as investors await Fed Chair Warsh’s talks in Europe — CNBC