This strategy involved shorting MicroStrategy (MSTR) while buying Bitcoin (BTC), each side of bet involving staggering $1 billion
The cryptocurrency market experienced a significant downturn recently, with Bitcoin leading the plunge.According to Krueger, a large fund was engaged in a risky trading strategy involving shorting MicroStrategy stock while simultaneously buying Bitcoin , with a staggering $1 billion allocated to each side of the trade.
His strategy backfired last Friday when the fund was forced to stop out, leading to the sale of $1 billion worth of Bitcoin.This massive sell-off allegedly triggered further liquidations in the market, compounded by sales from smaller investors, referred to colloquially as"shrimp, crabs and fish."This surge was part of a broader trend of increasing enthusiasm in the equitized Bitcoin complex, which now boasts over $20 billion in daily trading volume.
A post from Josh Olszewicz, a prominent analyst and former head of research at Valkyrie Investments, questioned the viability of the trading strategy outlined by Krueger. He suggested that such a trade would have likely failed before the events of last Friday. Amid this debate, Bitcoin's price has shown little resilience, currently trading just above the $66,000 level.Alex Dovbnya is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets.
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