Julian Hosp, Founder of Cake DeFi, has expressed concerns about the speculative nature of Bitcoin and MicroStrategy’s stock, suggesting they are vulnerable to sharp declines when market sentiment turns negative. This statement was made on the social media platform X.
“This is really on the Strategy website… they’re promoting themselves as the worst investment,” said Hosp. “The problem is, there’s no other way around it… MSTR is crashing… and it’s dragging Bitcoin down with it. The problem with pure price speculation like Bitcoin and thus also MSTR is that on the way up, all these price charts work great. But when that turns around, and everything turns negative, you have nothing to explain why it should go up again… there’s just no value, only a price.”
In October 2025, the cryptocurrency market saw increased investor caution despite some price recovery as Bitcoin traded between US$110,000 and US$115,000. This followed record-setting liquidation events and macroeconomic uncertainty. Analysts noted that the recent surge above US$112,000 coincided with a decline in precious metals and a resumption of institutional inflows into crypto. However, they emphasized that the rebound remains fragile with mixed sentiment. According to a report by CoinDesk, Bitcoin rose above US$112,000 as gold and silver prices fell during the same period.
Bitcoin’s implied volatility in early October 2025 reached its highest level in two and a half months, climbing above 42% according to the Volmex index. This indicates elevated risk perception among market participants. Analysts also pointed out major options expiries totaling over US$5.6 billion around October 10th, reinforcing expectations of sharp price swings and directional uncertainty. As of October 17th, Bitcoin had dropped below US$107,000 amid liquidity stress before rebounding to just above US$112,000 on October 21st.
MicroStrategy (ticker MSTR) continues to mirror Bitcoin’s movements but offers amplified exposure. In 2025, the stock has outperformed Bitcoin in several periods; one data set shows MSTR returns of about 29.5% since January 1st while Bitcoin returned approximately 14.9%. This reflects MicroStrategy’s aggressive accumulation of Bitcoin and its position as a corporate Bitcoin Treasury vehicle.
Hosp is an Austrian-born entrepreneur who transitioned from being a medical doctor and professional kite-surfer to entering the blockchain and fintech sectors. He co-founded TenX, stepping down in January 2019 before founding Cake DeFi where he serves as CEO. Hosp is also known for his work as an author and keynote speaker advocating for decentralized finance.
Cake DeFi is a Singapore-based decentralized finance platform founded by Hosp and U-Zyn Chua in late 2019. The platform aims to enable crypto asset holders to generate cash flow through various yield-oriented services such as staking and lending while emphasizing transparency and simplicity for users. By 2022, it had paid out over US$317 million in rewards to users with a growing user base nearing one million.
