As MSTR Flirts with 200-Day Average, Trading Volume in Leveraged ETFs Skyrockets

MSTR ETFs See Record Trading Volumes as Stock Struggles Near 200-Day Moving Average

Trading activity in leveraged ETFs tied to Strategy (MSTR) soared on Monday as the bitcoin-heavy firm’s stock price tested a crucial technical level, drawing intense speculation from both bulls and bears.

The Defiance 2x Long MSTR ETF (MSTX) recorded an all-time high of 24.33 million shares traded, with its price tumbling 32% to $17.90—marking its lowest level since September, per TradingView data. Meanwhile, the Defiance 2x Short MSTR ETF (SMST) saw 51.21 million shares change hands, the most since November, as traders bet on further downside.

MSTR dropped 16.6% to $231.62, precisely at its 200-day simple moving average (SMA), a key level watched by technical analysts. The stock has now shed 55% from its November peak of $543, mirroring bitcoin’s recent pullback amid broader macroeconomic concerns, including U.S. recession fears and a surging Japanese yen.

Despite the market turbulence, Strategy remains the world’s largest corporate holder of bitcoin, with 499,096 BTC—currently valued at $40.4 billion. The company has consistently used debt financing to expand its BTC position.

In a bold move, Strategy announced a $21 billion at-the-market (ATM) stock offering on Monday, reinforcing its commitment to increasing bitcoin exposure despite the ongoing volatility.

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