Crypto markets are in overdrive, with Bitcoin nearing $100,000 and traders doubling down on speculative bets. The Defiance Daily Target 2X Long MSTR ETF (MSTX), designed to amplify daily moves of MicroStrategy stock, has surged by 20%, hitting highs above $180 on Tuesday. This comes alongside a 10% jump in MicroStrategy (MSTR) shares, closing at $473.

Market participants are increasingly targeting deep out-of-the-money (OTM) calls on MSTX with strikes as high as $230, reflecting aggressive bets on further upside. These contracts, popular for their low entry cost and high payoff potential, are being traded across multiple expirations, including those set for 2025. Data from ConvexValue shows options volumes exploding, underlining a speculative frenzy.

Bitcoin’s staggering rise above $97,000, up 38% for the month, is providing the backdrop for this heightened activity. Analysts point to a convergence of catalysts, including expectations of pro-crypto regulatory policies from President-elect Donald Trump’s administration and Federal Reserve rate cuts that have rekindled risk-on sentiment.

MicroStrategy, the largest publicly traded Bitcoin holder with over 331,200 BTC (valued at $3.04 billion), remains at the center of this action. The company’s shares outpaced even Nvidia (NVDA) in trading volumes on Wednesday, according to Bloomberg analyst Eric Balchunas, a testament to its pivotal role in the Bitcoin ecosystem.

While the rally continues to build steam, traders and analysts alike are wary of the potential for corrections. Leveraged products like MSTX and deep OTM options highlight the growing speculative risk, with market exuberance reminiscent of previous crypto cycles. Yet, for now, Bitcoin remains on a relentless march toward its first-ever six-figure valuation.