BTC, XRP, ETH Price Prediction as $4.7 Trillion US Stock Market Options Expire Today

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Highlights

  • The crypto market is bracing for the US stock options expiry known as triple-witching.
  • Historically, this quarterly event often leads to volatility in the stock and crypto market.
  • BTC, ETH, and XRP have formed bearish patterns pointing to a strong breakdown.

Crypto market today remains calm as the focus among investors shift from this week’s Federal Reserve decision to the upcoming triple-witching event. This is a crucial quarterly event when stock options worth over $4.7 trillion will expire. This crypto prediction explores how this event will affect coins like Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH).

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US Stock Market Options Expiry Could Hit the Crypto Market

This week, major events tested the stock and crypto market. The Federal Reserve delivered its second interest rate decision of the year, while the SEC ended its Ripple lawsuit. Donald Trump also delivered a pre-recorded speech at a crypto conference.

The next test for crypto prices will happen on Friday when the Triple Witching event happens. This is an important event that happens each quarter when options expire. In this week’s event, the expectation is that options volume worth between $4.5 trillion and $4.7 trillion will expire. 

The witching event explains why American stocks largely erased some of the gains made after the FOMC decision. That happened since more activity related to roll-outs, position closing, and roll-downs happened. 

Stock tends to drop ahead of the triple-witching event. Dow Jones index futures dropped by 140 points, while those tied to the S&P 500 and Nasdaq 100 fell by 0.50%. 

The US stock market futures expiry has an impact on cryptocurrencies like BTC, ETH, and XRP because of their close correlation.

BTC Price Technical Analysis

There is a risk that the BTC price is on the verge of a bearish breakdown ahead of the triple-witching event. This case is emerging because Bitcoin price has been rising gradually this week, moving from a low of $76,402 this month to $83,890. 

The recent rebound has led to the formation of a rising wedge pattern. This is a popular bearish sign made up of two ascending and converging trendlines.With these two lines nearing their confluence, the BTC price will likely have a bearish breakdown to $76,400. The bullish Bitcoin forecast will become invalid if it rises above $89,240, the neckline of the double-top at $108,300.

BTC Price Chart
BTC Price Chart

ETH Price Technical Analysis

The ETH price is also at risk of a breakdown because it has formed a bearish flag pattern. This pattern comprises a vertical line and a rectangle pattern. It often leads to a strong breakdown. Ethereum price has moved below the key support at $2,120, the neckline of the triple-top pattern at $4,000. These patterns, coupled with the death cross that happened in February, means that ETH price crash to $1,500 is possible.

ETH Price Chart
ETH Price Chart

XRP Price Technical Analysis 

The daily chart shows that the XRP price has lost momentum after the SEC ended the Ripple case. That is a sign that XRP remains at risk of further downside since it has failed to move above $3. Rising above that level is important for the coin to invalidate the head and shoulders pattern that has formed this year. Therefore, there is a risk that the Ripple price will have a bearish breakout.

XRP Price Chart
XRP Price Chart
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Summary on the US Triple Witching Event

The $4.7 trillion US stock options expiry known as triple-witching, is a major event that happens once per quarter. It leads to volatility, which could impact crypto prices, which are now vulnerable after forming bearish patterns. 

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Frequently Asked Questions (FAQs)

1. How will the US stock options expiry impact crypto prices?

The triple-witching event may lead to more volatility in the stock market, which may in turn, affect crypto prices. That’s because of a close correlation that happens between stocks and crypto.

2. What is the most viable BTC price forecast?

Bitcoin has formed a rising wedge pattern, pointing to a major downward trend after the triple witching event.

3. Will XRP and ETH prices fall or rise after the triple-witching event?

Odds are high that the two have formed bearish patterns pointing to a strong breakdown in the next few days.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.