The cryptocurrency market is facing significant challenges as Bitcoin and Ethereum prices decline, with experts anticipating potential further decreases.
Current State of Bitcoin and Ethereum Markets
Bitcoin's price fell below $114,500, while Ethereum dropped more than 6%, reaching a 24-hour low of $3,600. Despite a slight improvement, indicators suggest that profit booking has not yet completed. Further price declines for Bitcoin and Ethereum are expected, which may also impact altcoins.
Upcoming Expiry of Options on Bitcoin and Ethereum
According to crypto derivatives exchange Deribit, over $7 billion in Bitcoin and Ethereum options are set to expire today. There are 48K BTC options with a notional value of $5.72 billion expiring and 350K ETH options worth nearly $1.35 billion. The higher put-call ratios and max pain prices below current market levels indicate bearish sentiment among traders.
Economic Uncertainty and Its Influence on Crypto Assets
Following high Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data, bond traders expect the Federal Reserve to keep interest rates unchanged in September. This could lead to additional volatility in the cryptocurrency market as investors evaluate risks and uncertainties.
The cryptocurrency market is under pressure from various factors, including option expirations and economic uncertainty, which could lead to significant changes in prices for both Bitcoin and Ethereum.
