Martin Shkreli Wants You to Short Bitcoin (BTC), MicroStrategy (MSTR), Quantum Computing Stocks, and Galectin Therapeutics (GALT)

Love him or hate him, one has to concede that Martin Shkreli is an exceptionally insightful person, having a knack for sniffing out the underlying trends

Martin Shkreli, the former pharma executive who became infamous for hiking the price of a life-saving drug by 5,000%, has a knack for sniffing out the underlying trends. Now, as the Dow does something it hasn't done since 1978, Shkreli wants you to short hyped-up names, including Bitcoin, MicroStrategy, quantum computing stocks, and a cancer-focused biotech firm.

Our readers would presumably recognize Martin Shkreli as the notorious C-suite executive who had jacked up the price of a life-saving drug, Daraprim, by 5,000 percent, winning widespread condemnation and an outright banishment from the wider pharma industry in the process.

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Shkreli also spent around four years in prison for securities fraud, only to win an early release in May 2022.

Short $MSTR $BTC $IONQ $RGTI $QUBT $GALT https://t.co/TEtbsRzGQZ

— Martin Shkreli (@MartinShkreli) December 18, 2024

This brings us to the crux of the matter. Shkreli, in his typically brusque manner, recently recommended a short position in Bitcoin, MicroStrategy (MSTR), IonQ, Rigetti Computing (RGTI), Quantum Computing Inc (QUBT), and Galectin Therapeutics (GALT).

Shkreli vs hype-tickers (and vs one biotech) https://t.co/wpXIiFT3JE pic.twitter.com/HadZ1pS8sb

— Breakout Point (@BreakoutPoint) December 18, 2024

Interestingly, except for Galectin Therapeutics, all other short recommendations by Shkreli are up by triple-digit percentages so far this year.

The market’s current state is nothing short of peculiar. The Dow’s ninth consecutive decline, a streak not seen since 1978, is unprecedented when juxtaposed against its position within 5% of its highs or above its 200-day moving average. This anomaly underscores a broader… https://t.co/OCWABMUUll

— Trading Mindset & Data (@MindsetData) December 18, 2024

Of course, given the market's current "peculiar" state, a case could be made for going against the proverbial herd in what are essentially contrarian trades. Consider the following occurrences as buttresses for Shkreli's skepticism around hyped-up names:

#BTC

It's Week 7

In 2013, Bitcoin pulled back in Week 7 of Price Discovery

In 2017, Bitcoin retraced -34% in Week 8 of Price Discovery

In 2021, Bitcoin pulled back -16% in Week 6

Will history repeat?

Or will Bitcoin go against the grain of history?

It doesn't necessarily… https://t.co/yaN7ihtvEq

— Rekt Capital (@rektcapital) December 17, 2024

As for Bitcoin, the world's preeminent cryptocurrency is due a significant pullback, as per historical precedents.

Given the market's current state, Shkreli's contrarian call might just turn out to be particularly prescient.