The cryptocurrency market has taken a big hit, losing about $42 billion in value over the last 24 hours. Major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP have all dropped in price, with losses ranging from 1% to 2.7%.

Even with the recent dip, Bitcoin is now trading at $96,000, bouncing back by 2.6% from its December low of $92,500. That low came after the Federal Reserve cut interest rates by 25 basis points, but comments from Chair Jerome Powell suggested fewer rate cuts are likely next year. This more aggressive stance from the Fed has shaken investor confidence.

Powell’s remarks also impacted other markets. The S&P 500, a key stock market index, fell over 3.5% before recovering slightly, though it’s still down 2.2% for the week. In the crypto space, Bitcoin has dropped over 8% this week alone, and Ethereum is down 15%. Other popular coins like Dogecoin (DOGE), Solana (SOL), XRP, and Cardano (ADA) have seen steep declines between 10% and 21%.

These losses have erased gains that the crypto market had made earlier in the month. This drop in value has likely encouraged many investors to cash out their profits following a rally after the U.S. elections.

Adding to the pressure, a massive number of crypto options contracts are set to expire soon. According to data from CoinGlass, over $14 billion worth of Bitcoin options will expire on Deribit alone, with another $1.7 billion expiring on Binance. For Ethereum, around $3.8 billion in options will expire on Deribit, along with $400,000 on Binance, all on December 27. These expirations could create significant volatility as traders adjust their positions.

The “maximum pain point” for these options—where most contracts would lose their value—is currently $84,000 for Bitcoin and $3,400 for Ethereum. This could lead to unpredictable price swings in the coming days.

Meanwhile, the crypto market also faced some negative news over the weekend. Richard Heart, founder of Hex and PulseChain, was added to Interpol’s Red Notice list due to fraud and violent assault charges.

In other developments, U.S. President-elect Donald Trump is making moves in the crypto space. He recently appointed Bo Hines as Executive Director of the Presidential Council of Advisers for Digital Assets (known as the “Crypto Council”). Earlier this month, he also named David Sacks, former COO of PayPal, as the new White House lead for Artificial Intelligence and Cryptocurrency policy. Trump described these areas as crucial for America’s future.

Despite all this turmoil, there’s still some positive news. Japanese investment firm Metaplanet just made its biggest Bitcoin purchase ever, buying 619.7 BTC in one transaction. The purchase cost nearly $60 million when Bitcoin was priced at $96,000, showing that some investors are still optimistic about the cryptocurrency’s long-term potential.

All eyes are now on the upcoming options expirations and whether they will bring more turbulence to an already shaky market.