Market Stumbles on Fed Caution as Options Expiry Looms: Crypto Daybook Americas

Market Overview - The crypto market is experiencing instability following the Federal Reserve's interest rate cut of 25 basis points, with Bitcoin (BTC) down 2.5% to $110,200 and the CoinDesk 20 (CD20) index losing 1.7% [1][2] - The market faced over $820 million in liquidations within 24 hours due to Federal Reserve Chair Jerome Powell's cautious stance on future rate cuts, despite easing trade tensions with China [2] Central Bank Actions - The Federal Reserve announced it would end its balance sheet runoff by December 1, which could inject liquidity into financial markets [3] - Analysts from Bankinter noted that traditional asset prices are hindered by "altitude sickness," suggesting a positive underlying trend despite recent volatility [3] Crypto Market Dynamics - The October 10 flash crash has left both retail and institutional investors cautious, with liquidity in order books still not recovered [4] - Digital asset treasuries (DATs) are contributing to selling pressure, with many trading below 1 mNAV, prompting some to buy back shares using funds from asset sales [4] Options Expiry Impact - A $13 billion options expiry on Friday is expected to exert additional pressure on crypto prices, with market makers facing negative gamma at strike prices between $100,000 and $111,000, potentially amplifying price swings [5] Upcoming Events - Key upcoming events include the Cronos (CRO) mainnet upgrade, a special meeting for Core Scientific (CORZ) stockholder vote, and HashKey Chain (HSK) pausing new staking orders [5] - Earnings reports are anticipated from Coinbase Global (COIN), Reddit (RDDT), Riot Platforms (RIOT), and MicroStrategy (MSTR) on October 30 [6]