Bitcoin is poised for a potentially volatile session as $10 billion worth of options contracts expire on Friday, adding significant supply-side pressure to a market already testing key support levels.
The digital asset has been trading in a narrow range following a two-day decline that saw it breach the psychological $60,000 barrier for the first time in recent weeks.
This temporary footing in the $62,000 range has halted a broader downward trend, but traders remain cautious ahead of the options expiry.
The cryptocurrency briefly touched $59,023 in New York trading on Wednesday before staging a modest recovery.
By the end of the session, Bitcoin had stabilized around $62,689, marking a slight rebound of 0.59% from the previous close.
This temporary footing in the $62,000 range has halted a broader downward trend, but traders remain cautious ahead of the options expiry.
The expiration of such a large volume of options often leads to increased trading activity and price swings as market makers adjust their positions.