MicroStrategy Markets Amplify Risk-On Sentiment as Bitcoin Inches Closer to $100K Milestone.

The speculative frenzy in crypto markets is reaching fever pitch as traders pile leverage onto already-risky financial instruments tied to MicroStrategy (MSTR), all while Bitcoin flirts with the $100,000 milestone. The Defiance Daily Target 2X Long MSTR ETF (MSTX), designed to deliver double the daily performance of MSTR, surged 20% to briefly trade above $180 on Tuesday. Meanwhile, MSTR shares gained 10% to close at $473.

This amplified activity has spilled into the options market for MSTX, with a sharp focus on deep out-of-the-money (OTM) calls at a $230 strike price. These contracts, covering expirations as far out as June 2025, allow traders to magnify potential profits while betting on continued upward momentum. OTM calls are cheaper to purchase but carry a higher risk of expiration worthless, underscoring the speculative excesses in play.

Broader trends mirror this sentiment, with MSTR’s call options fetching record premiums over puts, which are typically used for downside protection. Similar bullish patterns are emerging across CME, Deribit, and BlackRock’s Bitcoin ETF options, signaling an industry-wide appetite for risk.

Bitcoin itself broke new ground early Thursday, trading above $97,000 and posting a 38% gain for November. Fueling this momentum are expectations of pro-crypto policies under President-elect Donald Trump and Federal Reserve rate cuts, which have reinvigorated risk markets.

MicroStrategy, the largest public Bitcoin holder with over 331,200 BTC valued at approximately $3.04 billion, remains a market darling. On Wednesday, MSTR was the most traded stock in the U.S., surpassing even Nvidia, a tech giant with a market cap nearly three times its size.

As enthusiasm mounts, the crypto market appears firmly in the grip of a “risk-on” rally, though history suggests such speculative buildups often precede corrections. For now, traders seem undeterred, embracing the volatility as Bitcoin edges closer to its historic six-figure mark.