Bitcoin Price Volatility Expected Around Key Levels This Friday

Bitcoin's recent surge has pushed its price above $81,000 for the first time in three months, fueled by factors such as declining US Treasury yields and increased institutional demand for spot Bitcoin ETFs.

The market is now bracing itself for this Friday's options trading session, which falls on both the last week and month of August. On Deribit, approximately $6.4 billion worth of Bitcoin options will expire on August 28th, with call options outnumbering put options to indicate strong bullish sentiment.

However, the simultaneous expiration of such a large volume of options could lead to increased market volatility, particularly around key levels such as $75,000 and $80,000. According to Coindesk, there are approximately $236 million worth of open call positions at $75,000 and $157 million at $80,000.

Deribit's Chief Risk Officer Shaun Fernando noted that the upcoming expiry date is a development to be closely watched, citing the fact that around 20% of Bitcoin open positions on Deribit will expire during this period. This, combined with sharp price movements in the past week, makes the market more sensitive.