Bitcoin (BTC) has exceeded the $65,000 mark for the first time since early August, currently trading at $65,425—up 3% in the past 24 hours, according to CoinMarketCap data. This surge comes ahead of a significant $8 billion Bitcoin options expiry scheduled for Friday, which analysts predict will result in heightened market volatility.
The recent rally marks a robust rebound for Bitcoin, which had dipped as low as $53,000 in early September. While the impending $8 billion options expiry is noteworthy, it is not the largest on record; the final monthly expiry prior to this year’s Bitcoin halving in April saw a staggering $14 billion in options contracts.
Friday’s expiry represents the second-largest monthly event recorded on Deribit, the largest cryptocurrency options exchange, with $5.8 billion of the expiring options. According to Luuk Strijers, CEO of Deribit, about 20% of these contracts were “in the money” as of Wednesday. Notably, the distribution of these contracts is uneven, with approximately 28% of call options and only 9% of put options being in the money.
Traders are also closely monitoring the release of the Personal Consumption Expenditures (PCE) report from the U.S. Bureau of Labor Statistics, set to be published on Friday. Consensus estimates from FactSet suggest a 0.1% month-over-month increase and a 2.7% year-over-year rise in prices for everyday goods.
The recent upswing in Bitcoin is also aligned with broader market trends, following the Federal Reserve’s decision last week to cut interest rates. This monetary policy shift has positively influenced not only Bitcoin but also other digital assets and U.S. equities, as investor sentiment appears to be shifting back toward riskier assets.
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