Summary:
Bitcoin has surpassed $65,000, maintaining this level since early August.
Upcoming $8 billion options expiry could lead to high volatility.
Bitcoin currently trades at $65,425, rebounding from a low of $53,000.
Friday's expiry is the second-largest on record for Deribit, totaling $5.8 billion.
Traders are also focused on the PCE report, expecting a 0.1% increase month-over-month.
Bitcoin (BTC) has recently surged past the $65,000 mark, a level it has maintained since early August. This upswing comes just ahead of a significant $8 billion Bitcoin options expiry scheduled for Friday, which analysts predict could lead to high volatility in the market.
Currently, Bitcoin is trading at $65,425, reflecting a 3% increase over the past 24 hours, bouncing back from its dip to $53,000 in early September.
While the upcoming expiry is noteworthy, it is not without precedent. The last monthly expiry before this year's Bitcoin halving in April recorded a staggering $14 billion in options contracts. However, Friday's expiry will still represent the second-largest monthly event on record for Deribit, the leading cryptocurrency options exchange, accounting for $5.8 billion of the expiring options.
Luuk Strijers, CEO of Deribit, noted that approximately 20% of these contracts were 'in the money' as of Wednesday, with a notable disparity: 28% of call options and only 9% of put options falling into that category.
In addition to the options expiry, traders are also keeping a close eye on the upcoming Personal Consumption Expenditures (PCE) report from the U.S. Bureau of Labor Statistics, expected to be released on Friday. This report, which gauges the prices of everyday goods, is anticipated to show a 0.1% month-over-month increase and a 2.7% year-over-year rise, according to FactSet's consensus estimates.
The recent surge in cryptocurrencies aligns with broader market trends, especially following last week's decision by the Federal Reserve to cut interest rates. This shift has not only benefited Bitcoin but has also propelled other digital assets and U.S. equities, suggesting that investors are regaining their appetite for riskier assets.
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