Bitcoin declined 0.9% to $83,600 on Friday following a $15.6 billion options expiry on Deribit, the largest cryptocurrency derivatives exchange. The pullback retraced part of a rally that pushed the asset to an intraday high near $87,000 earlier in the week.
The options expiry is a routine event. Dealers unwind hedges after the flow clears, which typically creates short-term price volatility. Open interest fell 14.39% and 24-hour trading volume dropped 13.68% following the expiration.
Liquidations were split between long and short positions. Long positions saw $161.96 million liquidated in the last 24 hours, while short positions recorded $156.1 million in liquidations.
Spot Bitcoin ETFs pulled in $299.09 million on Friday, smaller than earlier-week single-day inflows. The broader crypto market cap stood at $2.87 trillion, down from the $3 trillion level reached earlier in the week. The Fear and Greed Index eased to 72 from a peak of 79.
Bitcoin Technical Setup Strengthens
Bitcoin broke out of a $75,000 to $81,000 range that had capped it for weeks. The asset’s 50-day moving average now sits above its 200-day moving average, forming what traders call a golden cross pattern.
Fed Rate Path Narrows
The Federal Reserve raised rates 25 basis points to a 3.75% to 4% range on September 16. Fed Governor Michael Barr stated that “further policy adjustments are likely needed,” signaling the rate cycle is not complete.
However, Federal Reserve Chair Kevin Warsh’s post-meeting dot plot projected a median rate of 4.1% through the end of 2027, indicating only one more hike is likely. Core Personal Consumption Expenditures inflation stands at 3.4%, near a four-year high.
Market pricing reflects uncertainty. The CME FedWatch tool shows 75% odds of an October rate hike, while Myriad Markets projects 68.5% odds. Two key inflation reports loom: Personal Consumption Expenditures data is scheduled for September 30, and the September jobs report is due October 2.
The Federal Reserve kept buying short-term Treasury bills after the rate hike to maintain bank reserves, signaling a measured approach to tightening.
XRP and Solana Rally Against Broader Decline
XRP outperformed the broader market, gaining 15.45% over seven days and 4.37% in the last 24 hours. The asset traded at $1.58 with a market cap of $99 billion. XRP ETFs notched a nine-day inflow streak worth $1.6 billion in late August.
Solana also gained ground, up 9.33% over seven days and 3.36% in the last 24 hours. Solana traded at $119.84 with a $70 billion market cap. Spot Solana ETFs from Fidelity, Grayscale, and VanEck launched in November 2025.
Solana’s Alpenglow upgrade cleared validator governance voting with overwhelming support. The upgrade targets 150-millisecond transaction finality, though the mainnet activation date remains tentative.
