Bitcoin’s volatility has forced institutions to seek hedging mechanisms beyond the digital asset ecosystem itself, making Strategy stock a popular choice for risk management. Tom Lee, chairman of Bitmine, argues that the company’s deep liquidity and robust options chain have made it the go-to instrument for large-scale hedging due to the lack of sufficient depth in crypto derivatives markets. This has resulted in the stock price serving as a proxy for Bitcoin sentiment, further highlighting its significance in market dynamics. The October crash served as a catalyst for this trend, weakening liquidity across exchanges and forcing institutions to seek alternative avenues for risk mitigation.