Swiss trader Doctor Profit said he reviewed the trading call he made on July 18 in a post published early July 30 Taipei time on his official Telegram channel: he took profit on his entire Bitcoin short built near $120,000, kept all of his stock shorts, and began buying back BTC and ETH through dollar-cost averaging.
At the time cited in the article, Bitcoin was trading at $63,908.81, up 0.18% over 24 hours, while Ether moved back above $1,900 after the Federal Reserve decision.
Doctor Profit said many people had asked why he was buying BTC and ETH if he still expected broader markets to fall. He wrote: “The correction is already happening, it is just mainly concentrated in the AI sector. Multiple AI stocks have dropped sharply, while Bitcoin has held inside its range and Ethereum has shown notable resilience. Instead of seeing a major flush in BTC and ETH, what we may be seeing is the real correction being concentrated in AI stocks.”
MSTR and Coinbase led the disclosed short book
He also shared the performance of part of his equity short positions since entry. The list showed MicroStrategy down 64.8%, Coinbase down 51.8%, SanDisk down 49.4%, Palantir down 40.6%, Netflix down 34.3%, IBM down 32.2%, Microsoft down 28.2%, and Nvidia down 8.6%.
Positions that moved against him were Apple, up 26.2%, and the S&P 500, up 4%.
The report said that, if read on its own terms, the table could suggest that the correction was centered on AI stocks. But the two biggest decliners on the list, MicroStrategy and Coinbase, are not AI names. They are crypto-related stocks. Nvidia, described in the article as the core AI name, was down only 8.6%, the smallest drop in the table.
Using July 29 U.S. closing prices, MicroStrategy closed at $93.33, down 77.5% from its 52-week high of $414.36. Coinbase closed at $160.09, down 60.2% from its high of $402.16. Over the same period, Bitcoin had fallen about 49.3% from its October 2025 peak of $126,080. On that basis, MicroStrategy’s drop was about 1.57 times Bitcoin’s and Coinbase’s was about 1.22 times.
The article’s reading of that positioning was that he was buying Bitcoin spot while shorting equity proxies for Bitcoin, a structure described as long spot and short premium, with the trade aimed at premium compression rather than a contradiction between being bullish and bearish on crypto at the same time.
Fed holds rates, long-end yields jump
The Federal Reserve kept rates unchanged at 3.50% to 3.75% on July 29 in a 9-3 vote, marking a fifth straight hold. The three dissenters were Beth Hammack, Neel Kashkari, and Lorie Logan, all of whom favored a 25 basis point hike. The article said it was the largest same-direction dissent since September 2016.
Chair Kevin Warsh said there was “no dovish version of the inflation target.” Asked about the dissent, he said: “What I wanted was a good family argument, and I got it.”
Bond markets reacted more directly than stocks. The 30-year U.S. Treasury yield rose 10.5 basis points to 5.201% and touched 5.244% intraday, the highest level since July 2007. The 10-year yield rose about 7 basis points to 4.671%.
All three major U.S. stock indexes closed lower. The Dow fell 2.19%, or more than 1,100 points. The S&P 500 dropped 1.52%, and the Nasdaq fell 1.74%. The Nasdaq 100 was down more than 11% from its June high, entering technical correction territory.
The report argued that if the market’s pressure point had still been AI valuation, the Nasdaq should have led declines rather than the Dow. In that reading, the market shock had shifted from AI valuation to higher long-dated yields, repricing long-duration assets across sectors.
Bitcoin remains stuck in the heaviest turnover zone
Bitcoin was described as still oscillating inside the $62,000 to $68,000 range, the zone with the heaviest concentration of position turnover. The rebound after the Fed decision triggered about $316 million in liquidations over 24 hours.
If BTC breaks below $62,000, the next support cited in the article is the lower edge of Doctor Profit’s grid at $54,000. He had previously said he would buy in tranches between $54,000 and $64,000 over as long as 20 days. A hold above $68,000 would mark a break out of the range.
Apple and Coinbase earnings seen as the next near-term test
The article pointed to two immediate checks over the next 48 hours. Apple was due to report after the close that day. It was his only deeply loss-making position and also Tim Cook’s last earnings call as chief executive, according to the report. Coinbase was also set to release second-quarter results the same day, and the article said he had bought Coinbase stock last week, with the short now used as a hedge.
Where he started rebuilding spot exposure
In the FAQ section, the report said Doctor Profit rebuilt his spot position near $64,000 and planned to accumulate in a grid between $54,000 and $64,000 over as long as 20 days, adding more aggressively as price moved closer to $54,000. It said this was his first long-term spot allocation since September 2025.