Shares in Nasdaq-listed Strategy, the world’s largest publicly listed bitcoin-holding company, are feeling the heat as demand for downside protection has reached its most intense level in over three months. As of July 31, 2025, the one-year put-call skew—a key measure of market sentiment—spiked to 3.6%, signaling a surge in traders’ appetite for put options and reflecting a growing bearish outlook on Strategy’s stock price.
Rising Tensions in the Options Market
Onlookers have been closely watching the options market, where this skew has been a telltale sign of looming apprehension. When the implied volatility of puts outpaces that of calls, it’s often seen as a harbinger of doubt among investors regarding future stock performance. According to Market Chameleon, this recent uptick suggests traders are shelling out higher premiums for downside protection, bracing for a potential drop in Strategy’s share price.
“What we’re witnessing is a classic case of market jitters,” explained Claudia Reyes, a senior analyst at CryptoInvest. “The rapid rise in the put-call skew indicates that investors are increasingly skeptical about Strategy’s near-term prospects, especially when you consider the broader uncertainties surrounding cryptocurrency markets.”
Strategy’s Bitcoin Bet Under Scrutiny
Strategy’s commitment to holding a staggering 628,791 BTC—valued at approximately $74.7 billion—has been a double-edged sword. While their aggressive acquisition strategy positioned them as pioneers in corporate bitcoin holdings, it has also exposed them to the volatile whims of the crypto market. Over the past two weeks, Strategy’s stock has taken a tumble, losing over 14% and closing just shy of the 50-day simple moving average. This follows their recent bold move of acquiring more bitcoin even as prices hit all-time highs, as detailed in our article Strategy Grabs Another $472M In Bitcoin—Even With Price At ATH.
The company’s share price woes have been compounded by broader market dynamics. Bitcoin itself has been navigating choppy waters, with regulatory pressures and fluctuating investor sentiment creating a challenging environment. The recent downturn in Strategy’s stock appears to have amplified concerns, prompting investors to seek out protective put options at an unprecedented rate.
Navigating the Future
Yet, some market watchers argue that the current bearish sentiment may not be entirely justified. “While it’s true that Strategy’s heavy bitcoin exposure makes it susceptible to volatility, it’s also important to recognize the potential upside,” noted Jeremy Lin, a cryptocurrency strategist. “If bitcoin rebounds or regulatory clarity improves, Strategy could very well find itself in a strong position.”
However, as of now, the sentiment remains cautious. The heightened demand for put options is a stark reminder of the market’s skepticism about Strategy’s ability to weather the storm over the next year. This development also raises questions about whether the company’s bold strategy—once lauded as visionary—can sustain its momentum in the face of mounting challenges. Interestingly, this skepticism is mirrored by the fact that Anti-Bitcoin Vanguard Might Be the Largest Institutional Holder of MSTR Stock, highlighting the complex dynamics at play.
Looking ahead, the coming months will be crucial for Strategy. Investors will be keenly observing not only the company’s stock performance but also the broader cryptocurrency landscape. As the market continues to evolve, all eyes will be on Strategy’s next moves and whether they can navigate this period of uncertainty with their bitcoin-heavy balance sheet intact.
For now, as traders position themselves for potential turbulence, Strategy’s future hangs in the balance, leaving open-ended questions about its resilience and strategy in a rapidly shifting financial environment.
Source
This article is based on: Strategy’s Market Hints at Strongest Downside Risk Since April
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
