Major cryptocurrencies faced significant downward pressure on Friday as $12.2 billion worth of Bitcoin options near expiration, with Dogecoin (DOGE) and XRP leading losses amid growing concerns over international trade tensions and upcoming economic data.
Market Overview: Widespread Losses Hit Crypto Assets
The cryptocurrency market witnessed broad-based declines in early Asian trading hours, with the CoinDesk 20 index showing an average drop of 4.5%. Dogecoin emerged as the biggest loser among major cryptocurrencies, sinking 7%, while XRP matched these losses as traders took profits following earlier relief rallies.
Notably, Dogecoin’s price movement has reached a critical juncture, testing key support levels as market sentiment weakens. Toncoin (TON) stood out as the sole gainer among top-20 cryptocurrencies, advancing 5% against the prevailing bearish trend.
SPONSORED
Trade meme coins like DOGE with up to 100x leverage and minimal slippage
Macro Factors Driving Market Sentiment
Several key factors are contributing to the current market downturn:
- Bitcoin options worth $12.2B set to expire with max pain at $85,000
- Upcoming PCE data release creating uncertainty
- Rising international trade tensions following Trump’s tariff warnings
- Gold reaching new highs above $3,109
Expert Analysis and Market Outlook
QCP Capital traders noted: ‘Spot is trading sideways and OI continues to bleed lower, signalling a broad lack of near-term optimism in the market.’ This assessment aligns with broader market concerns about escalating trade tensions between major economies.
PCE Data Impact on Crypto Markets
The upcoming Personal Consumption Expenditure (PCE) index release could significantly impact crypto markets. This key inflation indicator influences Federal Reserve policy decisions, with potential implications for risk assets like cryptocurrencies.
FAQ Section
What is causing the current crypto market decline?
The decline is attributed to multiple factors including large Bitcoin options expiry, trade tension concerns, and anticipation of PCE data.
How might the PCE data affect crypto prices?
High PCE readings could lead to tighter monetary policy, potentially pressuring crypto prices, while lower readings might support prices through maintained liquidity.
What are the key levels to watch for Bitcoin?
The options expiry max pain point at $85,000 serves as a crucial reference level for near-term price action.