The T-Rex 2X Long MSTR Daily Target ETF, which tracks MicroStrategy's stock performance, plummeted 10.14% in intraday trading on Tuesday. This decline was fueled by a drop in MicroStrategy's stock price, as the company's heavy investment in Bitcoin failed to pay off amid President Trump's silence on cryptocurrency plans during his inaugural address.
MicroStrategy, a software intelligence firm, has been aggressively acquiring Bitcoin in recent years, holding over 461,000 Bitcoins worth around $48 billion as of Monday. However, despite Trump's campaign promises of a "golden age" for cryptocurrency and talk of a strategic Bitcoin reserve, his inaugural address did not mention any plans for cryptocurrencies.
The lack of clarity on the new administration's stance on Bitcoin and cryptocurrencies led to uncertainty among investors, causing MicroStrategy's stock, and consequently the T-Rex 2X Long MSTR Daily Target ETF, to decline sharply. Investors had been anticipating potential policy changes or initiatives that could boost the value of MicroStrategy's Bitcoin holdings, but the absence of any such announcements during Trump's speech appears to have dampened their expectations.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.