"However, within four hours, over $145 million in short positions got squeezed as the market priced a clean regulatory win. By Friday morning, the gains had unwound. Bitcoin slipped below $80,000, XRP rallied to $1.55 yesterday before dropping to $1.44 today, Solana fell 5.6% to $90, and Ethereum gave back 2.1% to $2,250."
"The rally faded because Thursday's vote was the easiest gate, not the finish line. The bill still needs 60 votes on the full Senate floor, then House reconciliation, then Trump's signature. The market had priced the committee win, so the rally was short-lived. Traders who positioned themselves into the vote took profits as soon as it cleared. Without a fresh catalyst, the selling fed on itself through Thursday night and into Friday."
"Ethereum traders are loading up on $2,100 puts for the May 29 expiry-what Deribit called "alarm bells." When max pain is below spot, prices tend to drift lower as option sellers manage their books into settlement. The expiry passes after today, but the positioning underneath it doesn't."
"Kevin Warsh replaced Jerome Powell as Fed Chair this morning. Before he could say a word, the bond market repriced his entire mandate. The 30-year Treasury yield jumped to 5.114%-the highest since May 2025-while the 10-year hit 4.54%, also a 12-month high. Futures markets now price a 44% chance of a Fed rate hike by December."
Bitcoin slipped below $80,000 and pulled XRP, Solana, and Ethereum lower after earlier gains faded. A regulatory catalyst tied to the CLARITY Act produced a brief short squeeze, but the bill still required additional Senate votes, House reconciliation, and a presidential signature. Traders took profits once the committee win cleared, and selling continued without a new catalyst. Ethereum options positioning showed heavy demand for $2,100 puts into the May 29 expiry, with max pain below spot suggesting prices could drift lower into settlement. Bond-market repricing after Kevin Warsh replaced Jerome Powell pushed Treasury yields higher and increased the probability of a Fed rate hike by December, reducing risk appetite.
#regulatory-news #crypto-derivatives #options-positioning #federal-reserve-rates #bond-market-yields
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