As Bitcoin edges closer to the historic $100,000 milestone, the buzz is spilling into leveraged financial products like the Defiance 2X Long MSTR ETF (MSTX). This unique ETF, which mirrors double the daily movement of MicroStrategy shares, surged 20% to briefly touch $180 on Tuesday, while MicroStrategy stock itself climbed 10% to $473.
What’s capturing attention is the frenzy in MSTX options markets, where traders are snapping up deep out-of-the-money call options at a $230 strike price. These contracts, expiring as far as 2025, highlight a wave of speculative optimism, amplified by data from ConvexValue that shows significant activity at these higher-risk levels.
MicroStrategy, which owns over 331,200 BTC worth more than $3 billion, remains the face of corporate Bitcoin investment. On Wednesday, its trading volumes even surpassed Nvidia’s, underscoring its pivotal role in the crypto market’s current surge.
This rally isn’t happening in isolation. Bitcoin’s month-to-date gain of 38% to over $97,000 is fueled by expectations of pro-crypto regulatory shifts under a Trump administration and rate cuts from the Federal Reserve, which have reinvigorated risk-on sentiment. Analysts caution that this surge in leveraged trading could pave the way for volatility, yet for now, the market seems laser-focused on Bitcoin’s potential six-figure future.
