Bitcoin’s march toward $100,000 is not only setting new price records but also driving unprecedented levels of speculative activity in leveraged markets. The Defiance 2X Long MSTR ETF (MSTX), designed to amplify the daily movements of MicroStrategy shares, soared 20% on Tuesday, briefly hitting $180. Simultaneously, MicroStrategy stock surged 10%, ending the session at $473.
Investors are flooding into options tied to MSTX, focusing on deep out-of-the-money calls at the $230 strike. These contracts, with expirations extending into 2025, allow traders to bet on dramatic price increases while limiting their upfront costs. Data from ConvexValue highlights an explosion in volumes for these contracts, reflecting soaring bullish sentiment.
MicroStrategy remains at the core of Bitcoin’s institutional narrative, holding a record 331,200 BTC valued at over $3 billion. On Wednesday, its trading volumes outstripped those of tech giant Nvidia, illustrating its central role in the ongoing crypto rally.
Bitcoin itself is up 38% in November alone, surpassing $97,000 as optimism about favorable crypto regulations and Federal Reserve rate cuts fuels a renewed risk appetite. Analysts warn, however, that the speculative fervor in leveraged products like MSTX could introduce volatility risks. Still, for now, the market’s upward momentum shows no signs of slowing as Bitcoin edges closer to its historic six-figure milestone.
