This week, the cryptocurrency market is experiencing significant downward pressure, shifting away from the optimistic trends seen earlier in September. Both Bitcoin and various altcoins have entered tumultuous trading zones, with panic selling becoming evident as large investors exploit vulnerable positions.
Crypto analyst Ash Crypto identifies four primary reasons for this decline.
4 REASONS WHY CRYPTO MARKET IS DUMPING HARD THIS WEEK 🚨
1) OPTIONS EXPIRY
TOMORROW, $23 BILLION IN BITCOIN AND ETHEREUM OPTIONS WILL EXPIRE.
THIS IS A QUARTERLY OPTIONS EXPIRATION AND OFTEN BRINGS HIGH VOLATILITY.
MAX PAIN PRICE FOR $BTC IS $110,000 AND $3,700 FOR $ETH.… pic.twitter.com/JFCJxYeHs6
— Ash Crypto (@Ashcryptoreal) September 25, 2025
$23 Billion Options Expiry Intensifies Market Volatility
A key factor contributing to the current turmoil is the imminent expiration of quarterly options. Approximately $23 billion worth of Bitcoin and Ethereum contracts are due to expire soon. This event is causing instability as major players realign their strategies.
Ash Crypto explains that influential traders often guide prices toward “max pain” points where most options become worthless. For this quarter, these levels are approximately at $110,000 for Bitcoin and $3,700 for Ethereum. Traders outside these thresholds are now facing intense price fluctuations.
Concerns Over U.S. Government Shutdown Heighten Market Anxiety
The situation is further exacerbated by broader economic factors. The potential shutdown of the U.S government by October 1 has increased caution across risky investments like cryptocurrencies; a historical trend during such events; .Â
The revised Q2 GDP figure came in at %3.8, surpassing expectations of %3.3. This robust growth diminishes chances for immediate interest rate cuts,, a negative indicator for speculative markets such as crypto;
Dwindling Market Cap Reflects Growing Fear Among Investors
Citing CoinMarketCap data, the global cryptocurrency market cap has decreased by 2.1% to reach $3&period76 trillion, while trading volume surged &by nbsp35%. This indicates active sell-offs rather than a passive decline.
The overall sentiment has deteriorated significantly.&; The Fear & Greed Index moved closer towards “fear,” while major tokens like BNB show oversold conditions&; Traders’ confidence wanes rapidly under these circumstances&;
Cascading Liquidations Fueled by Retail Leverage Amplify Losses
The extensive use of leverage among retail investors has worsened losses substantially ;; At one point,& ;open interest in altcoins nearly doubled that of Bitcoin’s ;; indicating smaller traders engaging heavily in high-risk bets.
<P> ;Once prices began declining&comma liquidations compounded&comma intensifying the downturn ;; According to Ash Crypto&comma whales might have orchestrated this correction deliberately using early September's rally to trap leveraged long positions before triggering a sell-off .
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