A 60-day extension of the US-Iran ceasefire announced today helped lift crypto markets, with Bitcoin, Ethereum and XRP all rising as traders scooped up assets on the dip. The move comes as roughly $7.5 billion in monthly crypto options expire, injecting additional volatility into an already jittery market still digesting the latest US PCE inflation figures.
Buy-the-dip action
Bitcoin, Ethereum and XRP all posted gains Friday, tracking a broader risk-on tilt that followed the ceasefire news. Traders who had been sitting on cash after last week's sell-off piled back in, pushing prices higher through the afternoon. The expiry of $7.5 billion in options added to the churn, with dealers adjusting hedges as contracts rolled off.
Ceasefire relief, but inflation clouds linger
The 60-day extension buys time for diplomatic talks that had seemed on the verge of collapse. Markets welcomed the de-escalation, but the relief was tempered by the PCE inflation data released earlier this week. Core PCE came in above expectations, keeping the Federal Reserve on track to hold rates higher for longer. That tension — geopolitical détente versus sticky inflation — has kept crypto trading ranges tight, with the latest rally still within the month's established band.
Options expiry adds to the noise
Monthly options expirations are never quiet. Today's $7.5 billion notional — the largest in several months — forced market makers to unwind positions rapidly, contributing to sharp intraday swings. The combination of the ceasefire headline and the expiry created a brief liquidity crunch in some altcoin pairs, though most major exchanges reported normal trading conditions by late afternoon.
The 60-day clock resets today. Traders will watch for any signs of progress in US-Iran talks, while also eyeing the next Fed meeting in June. The PCE data means a rate cut is unlikely, but if the ceasefire holds, risk assets including crypto could extend their recovery. The next major options expiry is June 26.
