Strategy Stock Slumps 2.7% Amid Bitcoin Weakness and Hawkish Fed Bets

Strategy Inc stock declined by 2.7% in morning trading due to a combination of factors, including weakness in the Bitcoin price and hawkish Federal Reserve expectations.

The Bitcoin price fell below $78,000 at the start of September, a historically challenging month for the cryptocurrency, which dragged down Strategy as one of its most prominent leveraged proxies in public markets.

Following Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium last Friday, markets are pricing in around a 66-67% probability of a 25-basis-point rate hike at the September 15-16 FOMC meeting, tightening financial conditions and pressuring risk assets broadly.