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Stacks Stacks Up Losses . . . . . . If BTC Corrects Brace For Impact
More opportunities for DCAers . . . . . . . . . .
David Young
June 22, 2025
This Is Not Investment Advice
In the spirit of monitoring the action with Bitcoin L2s - STX can serve as somewhat of a barometer as it is liquid and trades on its own purportedly representing a “Layer 2” on top of Bitcoin. I say this in this manner because there are side-chains, L2s like Lightning, and a lot of gray area attracting a growing number of opportunists. Careful out there - in my opinion.
Nonetheless, with Bitcoin showing more weakness on Lower Time Frames especially and perhaps Risk On facing some pressure, how is Stacks holding up? Stacks tends to have a reflexive response to Bitcoin. If Bitcoin appears ready to break higher to a “new level” if you will, Stacks tends to rev up its engines to get ready. When the opposite occurs, you can guess what happens typically at this stage.
STX Daily
Here is a quick look at some activity on Stacks below. There is action and it ebbs and flows but no rocket ship explosion of growth just yet - looking at this particular set of data at least:
For those institutions and individuals dabbling with STX and exploring yield via the Bitcoin ecosystem in some way here is my humble view for this scenario:
It’s very early, STX will bounce around significantly in my humble opinion
If BTC corrects should not be shocking to see STX take some lumps, perhaps some big ones
Does not appear yet to be a critical mass of “stakers” putting a solid base underneath Stacks
