Crypto Markets Bearish as U.S. Jobs and Options Expiry Near
Crypto markets turned bearish ahead of Friday’s large options expiry and the U.S. August jobs report. Bitcoin slipped about 0.7% in 24 hours, while the CoinDesk 20 Index fell 1.3%, with only XRP eking out minimal gains. Derivatives positioning shows a tilt toward puts, with over $4.5 billion of crypto options set to expire on Deribit and perpetual funding rates easing. Open interest in perpetual futures dipped from $33 billion to $30 billion, and three-month basis compressed to 5%–6%, muting carry trades. Liquidations totaled $225 million in 24 hours. Separately, Trump-linked WLFI plunged 21% to a record low amid profit-taking and fading hype.
Bearish
The clustering of puts around $105,000–$110,000 strikes and heavy options expiry suggest traders are hedging against a downside move. Spot weakness—Bitcoin down 0.7% and CoinDesk 20 Index off 1.3%—paired with falling perpetual funding rates and compressed futures basis, point to muted directional conviction. Historical patterns around large options expiry and key macro releases, like U.S. jobs data, often trigger heightened volatility to the downside. The WLFI collapse underscores fading speculative interest. In the short term, elevated hedging costs and negative skew will likely pressure prices further; in the longer term, markets may stabilise once these events pass.