Cryptocurrency market traders are bracing for increased volatility and more liquidations following the $8.3 trillion “triple witch.” More than $2.2 billion worth of Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) options expire today. Will Bitcoin fall further and the broader cryptocurrency market collapse deeper amid growing headwinds?
The cryptocurrency market is witnessing massive liquidations amid “triple magic”
The cryptocurrency market saw a whopping $500 million in total liquidations across top crypto assets, according to Coinglass data. It is worth noting that approximately US$410 million in long positions and US$90 million in short positions were liquidated in the last 24 hours.
Markets expected sharp moves amid the largest “triple witching” event ever, worth $8.3 trillion, in the wake of the event. The hawkish approach of the US Federal Reserve. Triple Witching is a quarterly event in which stock options, index options, and index futures expire simultaneously, often resulting in high volatility.
This is turning into a bigger liquidation for the cryptocurrency market amid no signs of buying the dip, with more than $150 billion liquidated this week. Notably, more than 122,000 traders were liquidated in the past 24 hours, with the largest single liquidation order for ETH-USDT worth $10.49 million on decentralized cryptocurrency exchange Aster.
According to the data, Bitcoin, ETH, SOL, XYZ: SPCX, SPCX, SOL, HYPE, XRP,
Traders are preparing for the expiration of $2.2 billion worth of Bitcoin and ETH options
According to the cryptocurrency derivatives exchange Derived dataMore than 30,000 Bitcoin options with a notional value of $1.9 billion are set to expire on Friday. A buy/sell ratio of 0.77 indicates bullish sentiment among traders.
The maximum price of Bitcoin is $65,000, which is much higher than the current market price of $62,540. middle US-Iranian peace talks falter. Derbit revealed heavy long positions between $55,000 and $63,000, with most traders betting on Bitcoin collapsing to $60,000.
Options Terminal GreeksLive revealed that the skew remains relatively stable but still shows a negative skew, indicating that the market is still ready for a downturn. Next week marks the quarterly settlement, with approximately 15% of positions expiring.
Meanwhile, more than 137,000 ETH options with a notional value of $233 million are set to expire on Deribit, with a call ratio of 1.03. This slightly bearish sell ratio indicates that traders are anticipating further declines.
Furthermore, the maximum price for Pain is $1,725, which is higher than the current market price of $1,693 at the time of writing. In the last 24 hours, put volume exceeded call volume and the put/call ratio reached 1.11.
Analyst Ted Pillows claimed that ETH will likely bottom before BTC as most of the bearish liquidity has been eliminated. Ethereum is expected to sweep the $1,300-$1,400 area, but bullish liquidity will look more interesting.
Risks of a decline in XRP and SOL amid panic in the cryptocurrency market
Over $5.78 million worth of XRP options expire today, with a put ratio of 1.07. The maximum price for pain is $1.14, but traders continue to bet on $2.1 and $2.2 for prices to hit in September.
Today, the XRP price is witnessing volatility amid a decline to a low of $1.12, while BTC faces selling risks. The price is trading at $1.13, but volume remained low after the cryptocurrency market cleared. CME Group filed a lawsuit against the CFTC After Kalshi launched perpetual futures contracts for Bitcoin, ETH, XRP and HYPE.
Meanwhile, more than $12.59 million worth of SOL options will expire, with a put ratio of 0.86. The maximum price of pain is $70, and traders are looking at the $65 and $67 levels.
Sol price It is trading down 4% over the past 24 hours, currently at $68.61. The 24-hour high and low are $72.05 and $68.20 respectively. Trading volume has fallen by 11% in the past 24 hours, indicating a lack of interest amid uncertainty in the cryptocurrency market.
