Bitcoin Breaks Out Above $66K After Options Expiry

Traders spent most of the month blaming a dense cluster of options contracts for keeping Bitcoin trapped between $60,000 and $65,000. Friday brought a $1.2 billion options expiry that many hoped would clear the way. Bitcoin traded near $66,200 on Tuesday, gaining about 2.9 percent on the day and pushing past a key resistance level.

While the options expiry removed some market exposure, the real driver behind the price move appears to be a return of actual demand. US spot Bitcoin ETFs notched five straight sessions of inflows following an eight week dry spell. At the same time, large holders accumulated roughly 66,700 coins over the past sixty days, tightening available supply and helping push prices higher.

Despite the price breakout, market sentiment remains cautious. The Crypto Fear and Greed Index sits near 29, showing that traders are still worried. Analysts point to thin spot volumes and potential macro risks ahead of the upcoming Federal Reserve meeting, meaning traders should watch for a possible retest of support near $64,000 if momentum slows.