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▲ Bitcoin (BTC) Crash/Gemini Generated Image
Concerns about further declines in the overall cryptocurrency market have grown amid warnings that Bitcoin (BTC) could fall to $75,000. Analysts suggest that major altcoins could also face downward pressure due to a combination of factors including option expiry, increased demand for put options, outflows from Bitcoin and Ethereum (ETH) spot ETFs, and variables related to the next Chairman of the U.S. Federal Reserve (Fed).
CoinGape reported that warning signs of a sharp drop in the cryptocurrency market have reappeared ahead of the Bitcoin, Ethereum, and XRP option expiries on May 22 (local time). Bitcoin options are facing a notional value expiry of $1.57 billion today, with a put-call ratio of 0.64 and a max pain price of $78,500. However, over the past 24 hours, more put options have opened than call options, pushing the put-call ratio up to 1.50. Option traders are targeting strike prices of $75,000 and $73,000, and the max pain price for the monthly expiry on May 29 is also indicated at $75,000.
Defensive positions have also increased in the Ethereum options market. Ethereum options expiring today totaled 129,410 contracts with a notional value of $274 million, and the put-call ratio recorded 0.92. The max pain price was indicated at $2,200. Over the past 24 hours, Ethereum put option trading volume also surpassed call options, pushing the put-call ratio up to 1.15. Traders are eyeing strike prices of $2,150 and $2,100, and GreeksLive reported that whales continue to build short-term, low-cost protective positions.
XRP options also showed an increasing trend in bearish bets. The volume of XRP options expiring at the end of this month is approximately $29 million, with a max pain price indicated at $1.40. However, over the past 24 hours, the put-call ratio increased to 1.54. Conversely, whale accumulation is increasing ahead of the major XRP Ledger upgrade scheduled for May 27, and it is reported that more than 50% of all nodes have been updated to the latest release.
Fund flows also showed a shift towards XRP. XRP spot ETFs recorded net inflows of approximately $42 million over the week, with $8.88 million flowing in on Thursday alone. According to Santiment data, XRP saw the fourth largest daily increase in wallet creation this year, with 4,300 new wallets added in 24 hours. Solana (SOL) ETF and Hyperliquid ETF also saw inflows of $3.9 million and $16.1 million, respectively. In contrast, Bitcoin spot ETFs recorded an additional outflow of $100.9 million, following redemptions of $648.6 million, $331.1 million, and $290.4 million on previous trading days. Ethereum ETFs also faced pressure with a $32.6 million outflow on Thursday.
Macroeconomic variables also fueled market instability. CoinGape reported that Donald Trump had pressured Jerome Powell for months to fire him and stated that interest rate cuts were a “requirement” for the next Fed chair. However, the market is preparing for the possibility that Kevin Warsh, if appointed Fed chair, might raise interest rates as his first policy action. The CME FedWatch tool indicates no rate cuts this year and reflects a rate hike in January 2027. CoinGape stated that when Trump nominated Warsh as Fed chair, over $240 billion vanished from the crypto market in a single day, and liquidations totaling $2 billion occurred across Bitcoin, Ethereum, XRP, BNB, Solana, and Hyperliquid.
The potential sale of Bitcoin holdings by Trump Media was also presented as a downside variable for Bitcoin. The company reported a net loss of $406 million in Q1 2026, with a significant portion of the loss attributed to unrealized cryptocurrency losses and the sharp decline in the crypto market. CoinGape stated that if Bitcoin drops to $75,000, major altcoins such as Ethereum, XRP, Solana, Hyperliquid, Zcash (ZEC), and Cardano (ADA) could also experience further retracements.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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