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Will Bitcoin, Ethereum and XRP See Volatility as $7.1 Trillion Options Expire Today?

Published by
Anjali Belgaumkar and Qadir AK

Bitcoin, Ethereum and XRP traded carefully on Friday as global investors watched the expiry of about $7.1 trillion worth of U.S. stock and ETF options. This is the largest options expiry ever recorded, and its size has raised concerns about short-term market volatility. Still, analysts say such events do not automatically lead to a sharp fall in crypto prices.

Why Options Expiry Matters

Options expiry days usually bring higher trading activity. Investors either close their positions or move them into new contracts with later expiry dates.

This process can cause sudden price swings in stock markets, especially toward the end of the trading session. Because cryptocurrencies often react to changes in overall market mood, it remains to be seen if stock market volatility affects digital assets.

Crypto Impact Likely to Be Indirect

Experts point out that cryptocurrencies are not directly affected by U.S. equity options settlements. Any impact on crypto is more likely to come through indirect channels such as tighter liquidity, changes in the U.S. dollar, or shifts in investors’ willingness to take risks. In many past cases, large institutions prepared well in advance, meaning much of the price adjustment happened before the actual expiry date.

Bitcoin and Altcoins Prepare

Bitcoin was trading near a support zone between $85,000 and $86,000. If prices fall below this range, selling pressure could increase in the short term. On the other hand, staying above this level may help prices stabilize. Ethereum continued to move largely in line with Bitcoin, while XRP also dropped in the last 24 hours.

Analysts say the market’s focus will remain on how U.S. stock markets close and whether risk sentiment weakens heading into the weekend. 

FAQs

What is options expiry and why does it matter for markets?

Options expiry is when contracts reach their end date, often causing higher trading activity and short-term market swings.

Does U.S. stock options expiry directly affect Bitcoin and crypto?

No, crypto isn’t directly impacted. Effects are usually indirect, via liquidity changes, USD moves, or investor risk appetite.

How can options expiry influence cryptocurrency prices?

Expiry can create market volatility and risk-off sentiment, which may indirectly lead to short-term crypto price fluctuations.

How do Ethereum and XRP react during options expiry?

Ethereum often follows Bitcoin trends, while XRP can drop alongside market sentiment, reflecting broader crypto risk appetite.

Anjali Belgaumkar and Qadir AK

Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.

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