Bitcoin has surged past $65,000, reaching a peak of $65,687 on Thursday, marking a notable 3.7% increase. This rise comes just before the expiration of over $5.8 billion in options contracts, which some analysts predict could inject further volatility into the market.
Chris Newhouse, Director of Research at Cumberland Labs, highlighted that this price level has been a significant resistance point for Bitcoin throughout August and September. “We’re currently testing this level,” Newhouse noted, emphasizing that a breakout could potentially lead to a substantial rally, while a drop below $65,000 might trigger a selloff.
In addition to Bitcoin, other cryptocurrencies have also seen substantial gains. Dogecoin surged by 9%, Solana rose by 5%, and Avalanche experienced a 6.5% increase.
As the options expiry approaches, approximately 20% of Bitcoin contracts are currently in the money. Deribit’s CEO, Luuk Strijers, noted that such a large options expiry could influence market dynamics as traders prepare to rebalance their portfolios.
Darius Tabai, CEO of Vertex, added, “The market is likely to exhibit volatility around the 60k and 65k levels due to gamma hedging activities.”
Meanwhile, discussions about cryptocurrency regulation are gaining traction as investors await clearer guidelines that could enhance market stability.
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