Crypto market summary: Pressure on Ethereum and Bitcoin before a nearly $15 billion options expiration
After briefly trading above $113,000 earlier in the day, Bitcoin (BTC) fell 1.6% in the last day to $111,192 on Thursday, putting additional pressure on the cryptocurrency market.
While XRP declined 3.3% to $2.91, Ethereum (ETH) slid 2.4% to almost $4,472. Solana’s SOL, on the other hand, increased 1.3%, making it stand out among the other big digital assets.
The actions take place as traders prepare for a surge in volatility linked to Friday’s expiration of $14.6 billion worth of Ethereum and Bitcoin futures contracts. According to Deribit data, over $11.47 billion of those are BTC contracts and $3.13 billion are ETH contracts. The “max pain” prices of Ethereum and Bitcoin, according to analysts, are $3,800 and $115,000, respectively, indicating that as expiry draws near, markets may gravitate toward such levels.
Fear and Greed Index signals neutral mood
Market attitude is still cautious despite price activity. The market is struggling with uncertainty, as seen by the Crypto Fear and Greed Index’s neutral score of 47 at the moment. Analysts’ worries about waning bullish momentum have been echoed by the index’s recent decline.
The Bitcoin Bull Score Index, which just dropped to 20, its lowest level since significant bear cycles in 2018 and 2022, adds to the caution. Although the sub-20 level has typically held for weeks prior to significant declines, analysts warn that it is too soon to declare the start of a new bear market.
Outlook: Volatility ahead
Traders anticipate increased volatility in the following sessions due to the impending options expiry, which could result in large capital flows. While some analysts caution that extended selling could exacerbate losses if mood worsens, others see possibilities for a rebound if Bitcoin stabilizes close to its maximum pain level.
Due to a combination of macroeconomic headwinds, options-driven volatility, and cautious investor attitude, the cryptocurrency market currently seems to be in a holding pattern.
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