Multiple negative factors stacking up, can the crypto market hold its bottom line?

Today’s global financial markets can be described as an “autumn of turmoil,” from the Bank of Japan’s decision to raise interest rates, to US stock options expirations, and the chain reactions in cryptocurrencies—almost every event is testing investors’ nerves.

Bank of Japan Raises Rates, Yen Weakens Instead?

The Bank of Japan raised interest rates as expected to 0.75%, the highest level since 1995. Data shows this is indeed a hawkish move, but market reactions were somewhat surprising—Governor Ueda Shintaro did not provide a clear stance on future rate hikes, disappointing Yen traders. As a result, USD/JPY rose 1.05% to 157.09, with the Yen’s decline serving as a barometer of market sentiment.

“Triple Witching” Reappears, US Stocks Face Test

Today coincides with “Triple Witching,” and according to Goldman Sachs, over $7.1 trillion in options contracts will expire simultaneously, with about $5 trillion linked to the S&P 500 index. Such concentrated expiration events often trigger increased market volatility and trading volume. Analysts are closely watching the critical 6800 level on the S&P 500, which has become the final battleground for bears and bulls.

Meanwhile, the three major US stock index futures all rose—Dow Jones futures up 0.14%, S&P 500 futures up 0.33%, Nasdaq 100 futures up 0.43%. Nvidia (NVDA) and Tesla (TSLA) gained 1.36% and 1.13%, respectively, while Oracle (ORCL) performed the best with a 5.95% increase, driven by TikTok trading developments and OpenAI funding agreements as dual catalysts.

Cryptocurrencies Surge, but Risks Are Building

The Bank of Japan’s failure to signal enough hawkishness has instead boosted market risk appetite. The crypto sector overall advanced—Bitcoin (BTC) up 2.91%, climbing to $93.73K, Ethereum (ETH) up 4.35%, at $3.24K.

However, caution is warranted as approximately $23 billion in Bitcoin options contracts will expire next Friday, which could further amplify market volatility and warrants close monitoring.

Precious Metals Diverge, Funds Quietly Shift

The precious metals market shows clear structural divergence. Platinum and palladium have risen for the seventh consecutive trading day, with platinum up 0.66% to $1962 per ounce. Meanwhile, gold, at a historic high, experienced slight fluctuations and declined slightly. Some investors are shifting funds from gold’s record highs toward undervalued, more volatile platinum and palladium sectors, indicating a noticeable transfer of capital.

All these signs suggest market participants are re-evaluating the risk-reward balance.