Dogecoin and XRP Fall Over 5% as Bitcoin Options Expiry Approaches
Major cryptocurrencies experienced a decline, with Dogecoin (DOGE), Ether (ETH), and XRP falling over 5% as traders took profits following an earlier rally. The average drop for the top cryptocurrencies tracked by CoinDesk 20 was 4.5%, led by DOGE at 7%. Only Toncoin’s TON rose by 5% in the last 24 hours.
Gold prices reached new highs, surpassing $3,109, while the MSCI World Index faced its longest losing streak in a month. Asian equities are poised for a notable drop.
Over $12.2 billion in bitcoin options will expire, with max pain at $85,000. Traders noted a sideways trading pattern in the market, indicating a lack of optimism ahead of the U.S. personal consumption expenditure (PCE) data release.
The PCE index is a key inflation measure that influences Federal Reserve interest rate decisions. High readings may lead to rate hikes, negatively impacting risk assets like bitcoin, while low readings could boost liquidity and support bitcoin's price.
Market sentiment has been affected by trade tensions, with President Trump warning of increased tariffs on Canada and the EU, leading to concerns about economic stability. The CEO of Paybis indicated that prolonged trade conflicts might reduce capital allocation to bitcoin as a hedge against instability.