Bitcoin and Ether Face Challenges as Options Expiration Approaches

By James Van Straten (All times ET unless stated otherwise) The current narrative for Bitcoin and ether continues, with Bitcoin struggling at $85,429.56 and ether attempting to maintain its position above $2,825.83. Despite this, crypto enthusiasts can find solace in the fact that September, historically a bearish month, is nearing its end, and the typically strong fourth quarter is just around the corner. Industry sentiment remains cautious, with the Crypto Fear and Greed Index at 45, indicating a neutral stance that slightly leans towards fear. This is partly due to Bitcoin's underperformance compared to traditional assets, with Bitcoin gaining 7% over the past three months, while the S&P 500 and gold have seen increases of 9% and 12%, respectively. Looking ahead, the expiration of $17 billion worth of Bitcoin options tomorrow, with a max pain price of $110,000, could exert short-term downward pressure. For now, Bitcoin is expected to trade between $110,000 and $116,000 until October. Meanwhile, the most notable activity is in artificial intelligence and high-performance computing stocks. However, Bitcoin treasury companies continue to face challenges. KindlyMD, for instance, is struggling at $1.17, just above its PIPE pricing, while Metaplanet has fallen another 4% in Tokyo, with its stock dropping over 70% from its all-time high to trade at a 1.24 multiple to net asset value. Key areas to watch include token events, conferences, and derivatives positioning, as well as market movements and technical analysis. Crypto equities, treasury companies, and ETF flows will also be closely monitored.