Nearly $1 billion in leveraged crypto trades were wiped out on Monday as another steep drop hit the market. Bitcoin is down 6% to $84,810 at the time of writing, putting it down more than 8% for the year. Smaller altcoins have performed far worse, as a MarketVector index tracking the bottom half of the top 100 tokens has plunged almost 70% this year. Much of the market weakness traces back to early October, when $19 billion in leveraged bets were liquidated after President Donald Trump’s tariff threats shook financial markets.
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It’s worth noting that liquidation data is an important tool for crypto traders who use it to judge how much leverage is in the system and whether excess risk has been flushed out. But some industry insiders say exchanges do not share their full liquidation numbers, thereby making it hard to measure true risk levels. The downturn also followed a decline in Japanese stocks as the yen strengthened after Bank of Japan Governor Kazuo Ueda signaled the possibility of a rate hike.
Another development that added pressure to the crypto market was Michael Saylor’s Strategy (MSTR), which said on Monday that it created a $1.4 billion reserve to reassure investors it can cover dividends and interest payments without selling any of its roughly $56 billion in Bitcoin. Its mNAV—an important valuation measure comparing the company’s enterprise value to its Bitcoin holdings—fell to about 1.11, raising concerns it could turn negative. As a result, Strategy shares are down by more than 7%.
Is Strategy Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Strategy stock based on 12 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Strategy price target of $524.08 per share implies 219.4% upside potential.
