MSTR Stock Could See GameStop-Like Rage Trade, Says Experts After JPMorgan Short Call

Banking giant JPMorgan’s short sell call on MSTR stock has triggered a massive rage within the crypto community. Some experts believe that it could trigger a rage trade in the Strategy, similar to that seen with GameStop (GME) stock in 2021. With MSTR already down over 43% year-to-date and the Bitcoin price making new lows, concerns about forced liquidations are rising again.

JPMorgan Foresees MSTR Stock Removal From MSCI Index

JPMorgan has taken a short position against MSTR stock while also advising MSCI to remove the company from its equity indices, according to recent market commentary. The recommendation comes ahead of a critical ruling on January 15, 2026.

This is when MSCI will decide whether companies holding more than 50% of their assets in digital currencies should be excluded from benchmark indices. Michael Saylor’s MicroStrategy currently allocates approximately 77% of its balance sheet to Bitcoin.

If the MSCI Index enforces the exclusion rule, it would be automatic rather than discretionary. JPMorgan estimates the decision could trigger approximately $2.8 billion in mandatory selling from index funds. Moreover, the outflows could be as high as $8.8 billion in this case. However, Michael Saylor said that his firm is prepared to withstand even 80-90% BTC drawdowns.

With MicroStrategy currently holding around 3.26% of Bitcoin’s circulating supply, analysts warn of a forced sale of up to 100,000 BTC to meet obligations. This could overwhelm the existing liquidity in the market and significantly disrupt it as well.

MSTR Stock Could See A GameStop-Like Rage Trade, Says Experts

Crypto community believes that banking giant JPMorgan is conducting a hit job against crypto firms, especially Strategy (MSTR). As a result, community leaders are uniting for a major short squeeze or a rage trade in MSTR stock, aiming to liquidate JPMorgan’s short-sell positions heavily.

Bitcoin billionaire Max Keiser wrote: “CRASH JP MORGAN, BUY MSTR and Bitcoin.” Keiser has alleged that JPMorgan may be exposed to a significant short position against MSTR Stock. He added that the bank could face major financial consequences if the stock rallies. Keiser wrote:

UNCONFIRMED: JP Morgan appears to have an existentially threatening short $MSTR position that can potentially bankrupt $JPM if $MSTR trades 50% higher above Friday’s close.

The greater narrative is locked in, with the big banks versus Bitcoin this time. Furthermore, popular XRP lawyer John Deaton also issued sharp criticism against JPMorgan. Commenting on reports that the bank may hold a short position against MSTR stock, Deaton expressed hope that retail traders could trigger a market response similar to the one that occurred during the GameStop short squeeze.

He further alleged that long-standing government support has shielded large banking institutions such as JPMorgan from accountability. Market experts show confidence that MicroStrategy can go bankrupt only if an Asteroid hits the Earth.

How Can a Bitcoin Price Crash Impact Strategy?

The Bitcoin price is facing major selling pressure, correcting by 21.5% over the past week and slipping all the way to $85,000. During the same period, the MSTR stock has corrected 41%. Some people have raised caution that the Bitcoin price is approaching the Strategy’s average BTC buying price.

Crypto market analyst Ted Pillows noted that Bitcoin is now approaching MicroStrategy’s average purchase price, stating the asset is “only $10,000 away” from the company’s cost basis. Pillows clarified that Bitcoin falling below the $74,000 level would not trigger forced selling from MicroStrategy, despite speculation circulating online. “I Won’t ₿ack Down,” wrote Michael Saylor in his latest X post on November 23.

However, he added that the proximity to the firm’s average entry price could still fuel concern among traders and contribute to short-term panic.