Bitcoin Surpasses $65,000 Mark
Bitcoin (BTC) has recently surpassed $65,000, a price level not seen since early August. This surge comes just ahead of an $8 billion options expiry scheduled for Friday, which analysts believe could result in high volatility in the market.
As of now, Bitcoin is trading at $65,425, reflecting a 3% increase in the past 24 hours, according to CoinMarketCap. The cryptocurrency has made a strong recovery from a drop earlier this month, when prices dipped as low as $53,000.
Upcoming Options Expiry is Significant
The impending $8 billion options expiry is noteworthy, though it is not the largest on record. The last monthly expiry before this year’s Bitcoin halving in April saw a staggering $14 billion in options contracts.
However, Friday’s expiry is the second-largest monthly event recorded on Deribit, the largest cryptocurrency options exchange, with $5.8 billion of the expiring options.
Luuk Strijers, the CEO of Deribit, mentioned that approximately 20% of these contracts were “in the money” as of Wednesday. This figure, however, is not evenly distributed, with nearly 28% of call options and only 9% of put options considered in the money.
Traders Eye Economic Data
In addition to the options expiry, traders are closely monitoring the release of the Personal Consumption Expenditures (PCE) report from the U.S. Bureau of Labor Statistics, which is also set for Friday. The PCE report measures the prices of everyday goods and is expected to show a 0.1% month-over-month increase and a 2.7% year-over-year rise, based on estimates from FactSet.
Broader Market Trends Affecting Bitcoin
The recent increase in Bitcoin’s price aligns with broader market trends following the Federal Reserve’s decision to cut interest rates last week. This shift has not only benefited Bitcoin but has also led to gains in other digital assets and U.S. equities, as investors seem to be regaining their appetite for riskier assets.
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