Leveraged MSTR ETFs See Trading Frenzy as Stock Hits 200-Day Moving Average
Leveraged ETFs tied to Strategy (MSTR) saw a dramatic spike in trading volume on Monday as the bitcoin-focused firm’s stock plunged toward a key technical level, intensifying market speculation.
The Defiance 2x Long MSTR ETF (MSTX) recorded 24.33 million shares traded—a new high—while falling 32% to $17.90, its lowest price since September, according to TradingView data. Meanwhile, the Defiance 2x Short MSTR ETF (SMST) saw 51.21 million shares change hands, marking its busiest day since November as traders bet against the stock.
MSTR dropped 16.6% to $231.62, testing its 200-day simple moving average (SMA), a level often seen as a battleground for bulls and bears. The stock has now erased 55% of its gains from its November peak of $543, tracking bitcoin’s broader pullback as risk-off sentiment grips global markets.
Despite the sell-off, Strategy remains the largest corporate holder of bitcoin, with a stash of 499,096 BTC valued at approximately $40.4 billion. The firm has aggressively accumulated BTC, leveraging debt and equity offerings to expand its holdings.
In its latest move, Strategy announced a massive $21 billion at-the-market (ATM) stock offering, signaling its continued push into bitcoin even as its stock faces heightened volatility.
