MSTR Rises As Bitcoin Recovers from $65K, But Risks Still Lurk

Strategy stock (MSTR) has started to show a rebound after being hit hard alongside the recovery of Bitcoin prices from the lowest area. In pre-market trading, MSTR rose about 6.7% to $114.16, following a sharp decline the day before when Bitcoin briefly plummeted to around $65,000 and erased all gains since the US Presidential Election in November 2024.

Bitcoin's recovery to the $75,600 area triggered cautious dip buying, providing temporary relief for crypto-based stocks. However, sentiment towards Strategy remains fragile. Year-on-year, the stock is still down about 70%, worsened by a quarterly net loss report of around $12 billion due to mark-to-market adjustments of Bitcoin holdings.

This situation reinforces one thing: extreme volatility is still the daily fare in the crypto market and its derivatives. It's not about being bullish or bearish, but about the readiness of strategies to face the two directions of the market.

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NFA, DYOR.