Amid Options Expiry and Inflation Fears, Cryptocurrencies Rebound Then Retreat Again

▲ Bitcoin (BTC) price decline

The cryptocurrency market has turned downward across the board ahead of the expiration of $8.3 billion worth of Bitcoin (BTC) and Ethereum (ETH) options, compounded by concerns that U.S. inflation data could lead to a pause in interest rate cuts.

Independent senior journalist Varinder Singh reported that Bitcoin retreated from the $70,000 level, while the total cryptocurrency market capitalization fell more than 1% to $2.32 trillion. According to Deribit data, options worth approximately $7.38 billion, equivalent to 109,000 BTC, are set to expire, heightening investor caution.

Ethereum also dropped 2% over the past 24 hours to $2,008, while major altcoins including XRP, Cardano (ADA), and Solana (SOL) recorded losses ranging from 2% to 5%. The broad decline, including XRP, comes as the Fear and Greed Index fell to 13, remaining in the extreme fear zone.

Shifts in macroeconomic indicators are adding further pressure on the market. Weekly initial jobless claims came in lower than expected, confirming labor market strength and increasing the likelihood that the Federal Reserve will hold interest rates steady. Investors are now closely watching the upcoming Producer Price Index (PPI) data.

Popular analyst Willy Woo predicted that Bitcoin could fall to as low as $45,000 and projected that a return to a bull market may not occur until the first or second quarter of 2027. Research firm Matrixport noted that approximately $2.5 billion in gamma exposure is being unwound and said liquidity will be the key factor determining future price movements.

Analyst Ali Martinez identified $73,726 as a key resistance level based on market value to realized value (MVRV) analysis. Downside support levels are forming around $54,703 and $50,558, with market participants cautiously watching for signs of a rebound.

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