- Over $23 billion in Bitcoin and Ethereum options expiring this week created sharp volatility, with whales steering markets toward max pain.
- U.S. government shutdown risk and stronger GDP data pressured crypto markets, as political uncertainty and rate expectations weighed on investor sentiment.
- Whales accumulated 295,861 ETH worth $1.19 billion while Rex-Osprey confirmed plans for the first Ethereum ETF with staking this year.
The crypto market has faced heavy declines this week as options expiry, U.S. political risks, and leveraged trading drive selling pressure. Yet, institutional accumulation signals a possible turning point before the final quarter begins.
Expiry Volatility and Market Pressure
Over $23 billion in Bitcoin and Ethereum options are due for expiry tomorrow, according to data highlighted by Nonzee. The quarterly expiry is one of the most volatile events on the trading calendar.
Max pain levels are marked at $110,000 for Bitcoin and $3,700 for Ethereum. These thresholds represent the point where most options expire worthless, and larger investors are believed to guide prices near these ranges.
Price swings this week suggest that whales are actively steering the market during expiry. The sell-offs align with historical patterns, where expiry weeks often bring turbulence before stabilizing.
Shutdown Risk and Stronger Data
Markets are also weighing a looming U.S. government shutdown, with Nonzee citing 67 percent odds of closure by October 1. Historically, shutdown scenarios have triggered corrections across both equities and digital assets.
The uncertainty surrounding federal spending has pushed investors to reduce risk, creating additional downside for crypto markets.When political stand-offs drag on, volatility tends to increase as the liquidity becomes thinner.
In the meantime, the U.S. GDP revision for Q2 came in at 3.8 percent, which was above estimates of 3.3 percent, reflective of resilient growth, but it reduces the likelihood of rate cuts coming soon; this will put pressure on speculative assets like Bitcoin and Ethereum.
Leveraged Wipeout and Institutional Accumulation
Leverage has compounded the sell-off. Nonzee noted that retail traders had piled into long positions on perpetual markets, especially following decentralized exchange enthusiasm. Altcoin open interest even doubled before being unwound in recent liquidations.
The sharp decline in prices has coincided with mass liquidations, erasing positions and triggering cascading sell orders. This cycle has repeatedly destabilized the market, but it also resets leverage conditions for healthier rebounds.
Despite the downturn, accumulation trends tell another story. Whales have bought 295,861 ETH in the last 24 hours, valued at $1.19 billion. At the same time, Rex-Osprey announced it will launch the first Ethereum ETF with staking, opening doors for institutional inflows.
Such moves suggest that while retail capitulates, larger players may be preparing for renewed upside. Observers argue this pattern resembles a shakeout—designed to push out weak hands before a stronger Q4 rally unfolds.
