Leveraged MicroStrategy Markets Indicate Increased Risk Appetite as Bitcoin Approaches $100,000
Traders are amplifying risk in the market by adding leverage to the MicroStrategy ETF, reflecting an enthusiastic attitude and speculation.
A Bold Play in the Markets
Heightened Speculation with MicroStrategy ETF
The current state of the crypto market resembles a thrilling roller coaster, pushing both excitement and risk levels to an unprecedented peak. As Bitcoin approaches the $100,000 milestone, traders are significantly leveraging options linked to the 2X long exchange-traded fund (ETF) related to MicroStrategy's stock.
The Defiance Daily Target 2X Long MSTR ETF, trading under MSTX on Nasdaq, aims to deliver a double return of MSTR's daily performance. Recently, this ETF surged by 20%, reaching a peak of over $180, following a notable 10% jump in MSTR’s price.
Trading volumes related to these options have spiked as participants target deep out-of-the-money (OTM) call options, especially at the $230 strike price. This enthusiasm reflects a broader trend characterized by a bullish sentiment in the MicroStrategy options market.
The ongoing frenzy is fueled by expectations of a more favorable regulatory climate under President-elect Donald Trump, alongside anticipated Fed interest rate cuts. Recent CoinDesk data shows Bitcoin setting new all-time highs above $97,000, leading to a month-to-date increase of 38%.
MicroStrategy currently holds the title of the largest publicly-traded Bitcoin holder, with 331,200 Bitcoins accumulated since 2020, totaling a value of approximately $3.04 billion.
