Bitcoin (BTC) has surpassed the $65,000 mark, a level not seen since early August. The recent price surge is occurring ahead of an $8 billion Bitcoin options expiry due on Friday, which analysts believe could bring heightened volatility.
Currently trading at $65,425, Bitcoin is up 3% in the past 24 hours, according to CoinMarketCap. This marks a strong recovery from its early September dip, when the cryptocurrency fell to as low as $53,000.
Although the upcoming $8 billion options expiry is significant, it isn't unprecedented. The final monthly expiry before this yearâs Bitcoin halving in April saw a record $14 billion in options contracts. However, Friday's expiry will still be the second-largest monthly event on record for Deribit, the largest cryptocurrency options exchange, accounting for $5.8 billion of the expiring options.
Luuk Strijers, CEO of Deribit, estimated that around 20% of these contracts were "in the money" as of Wednesday. The distribution has been uneven, with about 28% of call options and 9% of put options in the money.
In addition to the options expiry, traders are closely watching the release of the U.S. Bureau of Labor Statistics' personal consumption expenditures (PCE) report, also scheduled for Friday. The report, which tracks the prices of everyday goods, is expected to show a 0.1% month-over-month increase and a 2.7% rise year-over-year, according to consensus estimates from FactSet.
Bitcoin's recent surge also coincides with broader market trends following the Federal Reserve's decision last week to cut interest rates. This move has spurred gains in not only Bitcoin but also other digital assets and U.S. equities, as investors appear to be regaining an appetite for riskier investments.
