Bitcoin Falls Below $65,000 After $5.8 Billion Options Expiry but Ends with Best September in 12 Years

Keywords:Bitcoin, crypto options, September rally, BTC price, $65,000 resistance, crypto market volatility, gamma hedging, cryptocurrency trading,

Bitcoin saw a sharp drop back below $65,000 after the expiration of $5.8 billion worth of crypto options on Friday, marking one of the largest expiries of the year. The original digital asset dropped about 3.7% to $63,370 on Monday, according to data from Deribit. Despite the dip, Bitcoin still recorded a 7.6% gain for September, marking its best performance for the month in 12 years.

Market analysts observed a combination of profit-taking and momentum-driven traders adding supply as contributing factors to the price drop. Brian Strugats of FalconX highlighted that technical indicators are signaling headwinds, with the stochastic RSI in overbought territory and large sell walls forming at the $66,150 level.

Chris Newhouse from Cumberland Labs noted a weakening organic demand for spot Bitcoin as traders took profits following the three-week rally. The volatility was also driven by gamma hedging, where options dealers buy or sell in response to large expiries, leading to significant price swings.

Despite this, Bitcoin’s September gains remain remarkable, as traders often refer to October as “Uptober”—a historically strong month for the cryptocurrency. Bitcoin has closed lower in October only twice since 2013, further fueling optimism for the next month.

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