Traders Taking Big Leverage To Chase Huge Gain As Bitcoin Nearing $100K Mark

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The cryptocurrency market is witnessing an intense wave of excitement as Bitcoin (BTC) inches closer to the record-breaking target of the $100K mark. At the same time, traders are doubling down with high-risk bets, leveraging tools linked to MicroStrategy (MSTR) to chase bigger gains. With MicroStrategy holding a staggering 331,200 BTC, all eyes are on its role in fueling this record-breaking rally.

MicroStrategy ETF Big Gains 

A spotlight is on the Defiance Daily Target 2X Long MSTR ETF, known by its ticker MSTX, which tracks MicroStrategy’s share price at twice the daily performance, which saw a sharp 20% jump, briefly crossing $180. Meanwhile, at the same time, MicroStrategy’s shares rose 31% to reach $473.

This ETF allows traders to amplify their exposure to Bitcoin through MicroStrategy, the largest public holder of the cryptocurrency. MicroStrategy’s massive Bitcoin reserve of 331,200 BTC, valued at over $3 billion, has made it a key player in the market.

Traders Bet Big on Options

Many traders aren’t just stopping at the ETF, they’re pouring money into options tied to MSTX. Some are buying deep out-of-the-money (OTM) call options with a $230 strike price, hoping to cash in on a significant price surge. 

However, Deep OTM call options allow traders to control large positions with a small initial investment. While these options are cheaper and offer high potential rewards, but they come with greater risks.

Buyers are targeting multiple expiration dates, including as far out as June 2025, reflecting confidence in Bitcoin’s long-term trajectory.

Speculation Over Price Correction

Beyond MicroStrategy, similar aggressive trading behavior is visible on platforms like CME, Deribit, and options linked to BlackRock’s Bitcoin ETF. Such speculative excesses, while exciting, often signal that markets may face corrections.

The excitement around Bitcoin is driven by optimism for pro-crypto policies under Donald Trump’s incoming administration. 

Additionally, rate cuts by the Federal Reserve have revived investors’ appetite for risk, pushing Bitcoin to new highs.