Public trading strategy
Bitcoin ETFs bleed $4.5 billion while Fed fears spike — short the Bitcoin proxy
Thesis
Bitcoin spot ETFs logged a record $4.5 billion in outflows in June as the market digests the possibility of further rate hikes. This institutional retreat from crypto is compounded by a strengthening US dollar ahead of new Fed Chair Warsh's comments. Because Strategy's (MSTR) entire corporate valuation is tied to its massive Bitcoin holdings, this combination of institutional crypto flight and a stronger dollar creates a perfect storm that should push MSTR shares even lower.
Strategy approach
Build a bearish momentum strategy on MSTR using D1 timeframe. Enter short when DXY makes a 10-day high and MSTR closes below its 10-day low. Exit if MSTR closes above its 5-day high or after a 21-day max hold.
Markets and timeframes
MSTRD1