Bitcoin Rout Fuels Trading in Crypto Stocks, One Big Bull Bet

• Bitcoin fell below $60,000 for the first time on Friday, prompting elevated trading volumes in crypto ETFs and related stocks on Monday
• A trader executed a $56 million diagonal call spread in MicroStrategy (selling 29,425 August 125-strike calls, buying June 180-calls), profiting most if the stock stays flat
• Another trader placed a $21 million bullish bet on Coinbase using diagonal calls (buying August 160-strikes for $26M, selling June calls for $4.9M), requiring the stock to exceed $183.40 for profitability

Summary

Market Context:

Bitcoin has experienced a significant downturn, falling 27% in 2026 and trading approximately 50% below its all-time high. After briefly dipping below $60,000 on Friday, the cryptocurrency recovered above that key level. Despite the brutal sell-off, trading activity in crypto-related stocks has intensified, with traders executing substantial options strategies.

Key Trading Activity:

*MicroStrategy (MSTR):* A trader executed a $56 million diagonal call spread, selling 29,425 August 21 125-strike calls while buying June 18 180-strike calls. This strategy profits most if MicroStrategy remains range-bound through August expiration. The company recently spooked investors by selling bitcoin for the first time in years.

*Coinbase (COIN):* Another trader placed a $21 million bullish bet using a diagonal strategy—selling 10,990 June 18 calls for $4.9 million and purchasing $26 million in August 21 160-strike calls. This position requires Coinbase to rise above $183.40 by August expiration to be profitable.

Expert Outlook:

FundStrat's Tom Lee remains optimistic, stating that "bitcoin remains the soundest money" amid AI-driven narratives undermining traditional systems. He emphasizes the resilience of bitcoin's proof-of-work architecture as critical to any cryptocurrency recovery.

Market Implications:

The contrasting strategies reflect divergent views on crypto's near-term trajectory. While one trade anticipates MicroStrategy consolidation, the Coinbase position represents a decidedly bullish stance on the exchange stock's recovery potential. Both trades capitalize on elevated options premiums in the crypto sector.