Crypto Market Crash Alert: Will BTC Price, ETH, XRP, Altcoins Tank on Options Expiry?

Key Insights:

• Investors anticipate a crypto market crash as Bitcoin price could fall with 33,158 BTC options with a notional value of $3.74 billion set to expire on Deribit.
• Ethereum price is likely to crash next week due to the monthly options expiry.
• Bearish sentiment prevails for BTC and ETH among derivatives traders.

Crypto traders expect significant volatility as more than $4.6 billion in Bitcoin, Ethereum, and XRP options expire on Friday. The massive profit booking could trigger a crypto market crash as investors are cautious and brace for further pullback in Bitcoin, Ethereum, XRP, Solana, Dogecoin, Cardano, and other altcoins.

This crypto expiry will trigger selloffs leading up to the massive $14 billion monthly crypto options expiry on August 29.

Crypto Market Crash: BTC Options Expiry Sparks Speculation

Over 33,158 BTC options with a notional value of $3.74 billion to expire on Deribit on August 22. The put-call ratio of 1.24 suggests a massive bearish sentiment among derivatives traders.

Having said that, a flurry of experts anticipate a potential crypto market crash.

At the time of writing, the max pain price was $117,000. Also, Bitcoin price trading below the max paint point indicates selling pressure.

The selling pressure could plunge Bitcoin price towards $110K or lower, with $112,000 as the key support level. Matrixport predicted $112,000 as the key level to watch as the crypto investors turned extremely cautious.

In the last 24 hours, the put volume was higher than the call volume. The put-call ratio of 1.05 suggests traders remained bearish and bet more put options than calls.

Deribit stated that the 6-month outlook for Bitcoin turned bearish. It added that 180-day call-put skew hit -0.42, the most negative print since June 2023.

Crypto analyst Michael van de Poppe confirmed a volatile crypto market due to Jerome Powell’s Jackson Hole speech jitters. Another popular analyst, Ali Martinez, claimed Bitcoin risks falling to $108,000 if the price breaks below $112,000 support level.

Will Ethereum Price Lose $4,200 & Trigger Crypto Market Crash?

As Bitcoin dominance dropped, investors bet on Ethereum price to hit a new all-time high around $5,000. However, ETH price fell to $4,000 due to options expiry, CME gap, and technical chart weakness, as The Coin Republic accurately predicted.

Besides, the speculations over a potential crypto market crash has further dampened the market sentiment.

Meanwhile, 218,288 ETH options with a notional value of almost $0.94 billion are set to expire on Deribit. The put-call ratio was 0.82 at the time of writing, indicating a slightly bearish sentiment among traders.

The max pain price was $4,250, signaling high odds of a pullback as the ETH market price trades above the max pain point at the time of writing.

In the last 24 hours, traders turned more bearish on ETH as the put-call ratio was 0.94. Ethereum price is more likely to drop next week due to the monthly options expiry, with today’s expiry setting the stage for selloffs.

According to analyst Crypto Tony, a dip to $4,000-$3,900 levels would give an opportunity to buy for the next leg up. He added that a reclaim above $4,430 to negate the bearish outlook and prices will pump.

BTC and ETH Price Performance

The anticipation over a potential crypto market crash was bolstered by the recent gloomy momentum of Bitcoin’s movement. This suggests that the investors are taking a pause after a robust rally in the digital assets space earlier this month.

BTC price fell nearly 1% in the past 24 hours and 5% in a week, with the price currently trading at $113,111. The 24-hour low and high were $111,986 and $113,984, respectively.

Moreover, trading volume dipped further by almost 12% in the last 24 hours, indicating a decline in interest among traders

Meanwhile, ETH price jumped 0.80% in the past 24 hours and slumped 7% in a week, with the price trading at $4,346. The intraday low and high were $4,205 and $4,336, respectively.

Trading volume has dropped 26% over the last 24 hours, indicating traders stayed away from the market amid options expiry.