The market loves psychological turnarounds. And in the past 24 hours, Strategy (MSTR) has provided a textbook example. After a brutal plunge on Monday morning, the stock has rebounded strongly, gaining over 18% since its low point.
Strategy bounces back after a bloody Monday
Jason Calacanis urged his followers on Monday evening to sell MSTR and buy bitcoin directly, exclaiming ‘Told y’all this would happen.’ Peter Schiff, sticking to his anti-crypto stance, intensified his attacks, accusing Michael Saylor of being ‘the biggest con man on Wall Street.’ The Financial Times, through Craig Coben, also joined in the chorus:
Ce qui semblait audacieux et brillant paraît désormais erratique et chaotique.
This unanimous hammering of an already bloodless title often constitutes a powerful contrarian signal. Historically, moments when skeptics are most triumphant often coincide with local troughs. On Monday, as the critiques piled up, MSTR touched $155 before closing above $170. On Tuesday, the stock surpassed $180, even turning positive for the week.
Bitcoin’s return above $90,000 drives the rebound
The turnaround comes amidst a broader market recovery. Bitcoin, plummeting below $84,000 in the night from Sunday to Monday, bounced back to reach $90,000. The improvement in crypto sentiment provides clear tailwinds to MSTR, which remains a directional proxy for the price of bitcoin, despite recent divergences related to concerns over mNAV and dividend policies.
A 70% drop attracting bargain hunters
Critics have been the big winners of 2025. Strategy’s stock has plummeted over 70% since its late 2024 highs. But markets never move in a straight line. After such a purge, excessive pessimism itself becomes a rebound fuel, especially when the narrative shifts from caution to triumphalism.
For traders attuned to market psychology, this change in tone could mark a turning point, at least in the short term.
A definitive bottom? Too early to tell
The rebound does not guarantee anything. Structural concerns, regulatory pressure, threats to mNAV, liquidity reserves, exclusion from MSCI indices, do not disappear. But the sentiment signal is hard to ignore. When everyone celebrates the fall of an asset, the market has often already done the heavy lifting.
Strategy may not have hit its final bottom. However, Monday’s low point closely resembles a tradable trough. And sometimes, that’s all it takes to reignite momentum.
