Friday’s “Quad Witching” Will Trigger The Next Big Move

Bitcoin is showing significant volatility heading into Wednesday’s FOMC.

However, experts point out that the Federal Reserve is highly likely to proceed with a 25-basis-point rate cut, a decision that is already priced in. 

While Fed Chair Jerome Powell’s post-FOMC remarks could move markets, smart money investors are paying even closer attention to Friday’s quad witching, a quarterly event with major repercussions for stocks and, by extension, crypto.

Quadruple witching occurs when four types of derivatives expire simultaneously: stock index futures, stock index options, single-stock options, and single-stock futures. This often results in a surge in trading volume and increased volatility in the broader financial markets. 

Following the last quad witching on June 20th, the BTC price fell by nearly 8% in just two days to form a local bottom, before a 25% rally to a new all-time high. 

Bitcoin price predictions from top analysts reveal that the largest cryptocurrency could show similar whipsaw price action this time as well, which could offer an excellent buying opportunity. 

This would also provide the ideal backdrop for BTC ecosystem coins like Bitcoin Hyper to rally, which many are calling the next 100x crypto. 

What Is Quad Witching And Why Does It Affect Crypto Prices?

Quad witching is a quarterly market event that takes place on the third Friday of March, June, September, and December, when four major types of derivatives expire at the same time: stock index futures, stock index options, single-stock options, and single-stock futures. 

Because so many contracts settle simultaneously, quad witching is often marked by a surge in trading volume and heightened volatility. Large funds, institutions, and market makers are forced to close, roll over, or hedge massive positions, which can push stock prices around in ways that don’t always align with fundamentals.

Notably, Bitcoin shows a strong correlation with stocks, particularly the tech-heavy Nasdaq 100. As a result, quad witching results in significant volatility in crypto prices. 

Following the last such event, the Bitcoin price saw an 8% correction, followed by a 25% rally to a new all-time high. 

As digital assets mature and institutions gain greater exposure, quad witching has become increasingly important for crypto traders as well.

Prominent analyst IncomeSharks believes that the quad witching, along with the FOMC, could result in significant market volatility. 

He is projecting the FOMC to be a sell-the-news event, which could result in an initial dump in the Bitcoin price, followed by a slight recovery and then a larger crash following the quad witching. 

He anticipates that the crypto bottom would be in by September 25th, which can be an excellent buying opportunity for sidelined investors before the explosive Q4 bull run. 

Bitcoin Price Prediction: How High Can BTC Go This Year?

The Bitcoin price reclaimed the $116,500 resistance level on Tuesday. 

However, spot cumulative volume delta (CVD) is declining, indicating that the rally is being fueled by perps and leverage rather than genuine spot demand, raising the risk of a sharp reversal. 

Sidelined investors should continue to exercise patience rather than trying to navigate the extreme September volatility. A monthly close above $116,750 could be the perfect buying signal for them. 

On the contrary, a weekly close above $118,000 could confirm the start of a new uptrend, Michael van de Poppe of MN Trading reveals. 

Experts remain confident that the BTC price will hit $150,000 this year, as indicated by the Global M2 money supply. 

Meanwhile, Pantera Capital’s Bitcoin price prediction is $750,000 in the long term. 

Whales Buy Bitcoin Hyper For 100x Returns

Bitcoin’s excellent prospects are good news for BTC ecosystem coins. They tend to show a strong correlation with BTC, which makes them a high beta play. 

For instance, the latest BTC layer-2 coin, Bitcoin Hyper (HYPER), is seeing strong buying pressure from the whales during its ongoing presale. 

Five-figure buys are almost a daily occurrence, and one whale purchased $160k worth of HYPER in a single transaction. 

The presale has already raised over $16.3 million in its ICO, a sign of strong community support and high upside potential. 

With Bitcoin quickly becoming one of the most in-demand financial assets, Bitcoin Hyper play a key role in tackling its network congestion and scalability issues. In fact, it could become a hotbed for payment apps, DeFi apps and even meme coins that are looking to launch on the Bitcoin ecosystem. 

If successful, Bitcoin Hyper could bring the performance, scalability and programmability of modern blockchains to Bitcoin. 

Considering that the top layer-2 projects tend to reach multibillion-dollar valuations, it is no surprise that early buyers are eyeing up to 100x returns from HYPER. 

Visit Bitcoin Hyper Presale

This article has been provided by one of our commercial partners and does not reflect Cryptonomist’s opinion. Please be aware that our commercial partners may use affiliate programs to generate revenue through the links in this article.