đ Strategyâs Bitcoin Proxy Role Under Pressure
Strategy, long seen as a high-beta mirror of Bitcoin (BTC), is losing its shine as hedge funds tighten their grip on trading and major investors scale back.
đ A fresh analysis from 10x Research (Aug. 18) shows Strategyâs stock locked in one of its narrowest ranges in years, with $360 acting as a critical support line. This level has been tested multiple times, reflecting weaker conviction and shrinking volatility.
đŠ Vanguard, the companyâs largest shareholder, trimmed its position by 10% last quarter, while hedge funds have since dominated the flow of market activity. This transition raises the stakes for $360 â will it hold as support or break into deeper downside?
đ Historically, Strategy amplified Bitcoinâs swings, offering traders leveraged exposure. But with Bitcoinâs volatility compressing and hedge fund-driven sentiment steering the market, that edge appears to be fading.
Global comparisons show the shift:
Strategy shares â down 13% since mid-July
Metaplanet (Tokyo-listed) â down 37% in the same period
Meanwhile, capital is rotating toward Ethereum (ETH) treasuries and crypto IPOs, which are increasingly viewed as fresher, higher-convexity plays.
đ The question for investors: Is re-entry best timed by price levels like $360, or by broader conditions that reignite demand for Bitcoin treasury exposure?
Dyor No Financial advice !