Bitcoin Price Surges to $65K Ahead of $5.8B Options Expiry

Bitcoin Surges Past $65,000, Driven by Options Market

Bitcoin price has breached the $65,000 mark for the first time in a month, reaching $65,687 on Thursday, representing a 3.7% gain. This surge coincides with the impending expiration of over $5.8 billion in options contracts, which analysts believe could introduce further volatility in the market.

Chris Newhouse, research director at Cumberland Labs, highlights the significance of $65,000 as a resistance level in August and September. "We're testing it again," he notes, adding that a breakout above this level could trigger a rally, while a breakdown below $65,000 may lead to a sell-off.

Bitcoin Price Chart | Source: CoinMarketCap

The positive sentiment extends beyond Bitcoin to other altcoins, including Dogecoin (9%), Solana (5%), and Avalanche (6.5%).

Approximately 20% of Bitcoin contracts are in the money ahead of the options expiration on Friday. Deribit's CEO, Luuk Strijers, believes this substantial expiration could influence the market as traders adjust their positions.

Darius Tabai, CEO of Vertex, comments, "The market is expected to experience uncertainty prior to expiration as gamma hedging dominates the market around the 60 and 65k levels."

Meanwhile, discussions regarding cryptocurrency regulation continue, with investors anticipating clearer rules to enhance market stability.