Cryptocurrencies Face Uncertainty Ahead of Triple-Witching Event
Major cryptocurrencies like Bitcoin, Ethereum, and Ripple are showing signs of volatility as the triple-witching event approaches. Bitcoin’s price has dipped to $83,580 from its weekly high of $87,158.Ethereum has fallen below $2,000, and Ripple has dropped from $2.59 to $2.35 this week.
This price movement is likely due to market participants awaiting the quarterly triple-witching event on Wall Street. This event occurs on the third Friday of March, June, September, and December, when stock options, futures, and index options expire simultaneously. The upcoming event will see contracts worth over $4.5 trillion expire, historically causing market volatility.
As a notable example,during the last triple-witching event on december 20,Bitcoin opened at $97,777,crashed to $92,200,and closed at $97,000. The event often triggers price fluctuations in both stocks and cryptocurrencies.
This quarter’s triple-witching day comes amid concerns about Donald Trump’s tariffs and a recent Federal Reserve interest rate decision. The fed hinted at scaling down quantitative tightening policies, while Jerome Powell noted inflation would be temporary.
Bitcoin has formed a rising wedge pattern, indicating a potential price drop. It sits atop a double-top at $108,150 and a death cross from March 14. The immediate target for Bitcoin could be its March low of $76,890. Ethereum has formed a triple-top pattern, suggesting a bearish breakout. It has fallen below key moving averages, hinting at a possible drop to $1,500. Ripple has formed a head and shoulders pattern, risking a fall to $1.The event happens two days after the Fed’s muted interest rate decision, warning of stagflation but calling inflation transitory.
Bitcoin’s price action suggests further downside risks. Ethereum’s triple-top pattern points to a strong bearish breakout, with a potential drop to $1,500. Ripple, despite the SEC ending its case against Ripple, is at risk due to a head and shoulders pattern, with a potential drop to $1.93. Traders should prepare for increased volatility. Stay tuned for updates as the event unfolds.
- Bitcoin price may drop to $76,890.
- Ethereum could fall to $1,500.
- Ripple faces a breakdown risk, with a possible drop to $1.
Thes patterns signal caution for investors. Keep an eye on these trends for better investment decisions.
