Record $6.4B pulled from Bitcoin funds as crypto winter bites — short the overex
Thesis
The biggest Bitcoin investment funds just saw their worst month ever, with investors racing for the exits to the tune of $6.4 billion. When institutional money leaves Bitcoin that fast, it tends to drag down the companies whose entire business model depends on a healthy crypto market. MicroStrategy is deeply tied to Bitcoin's price because it holds massive amounts of the coin on its balance sheet, and its stock often moves more violently than Bitcoin itself. With Bitcoin down over 40% from its peak and no sign of the outflows stopping, this is a classic setup to bet against the most crypto-exposed companies.
Strategy approach
Build a rule-based strategy that enters short MSTR on D1 when price closes below the 10-day EMA and the 20-day EMA is sloping downward. Exit on a 2 consecutive day close above the 10-day EMA or after a 14-day max hold. Use a 8% stop loss.