Tom Lee: Insufficient crypto liquidity leads institutional hedging demand to spill over to MicroStrategy In a November 21 interview on CNBC, the host cited MicroStrategy's 50% drop over three months and a 65% decline from its July peak, questioning the causal relationship between its downturn and Bitcoin's synchronized drop. Bitmine Chairman Tom Lee explained that billion-dollar Bitcoin long positions held by large institutions are almost impossible to effectively hedge through crypto derivatives or CME futures. MicroStrategy's highly liquid options chain has become the only asset capable of accommodating such large-scale hedging demands. As a result, the hedging pressure flowing into the market to protect Bitcoin longs has been concentrated on MicroStrategy, making the company's stock price an unexpected leading indicator of Bitcoin risk appetite and market sentiment. Source: CNBC