Bitcoin fell to its lowest level in more than three weeks on Friday, as traders turned increasingly defensive following the year’s largest options expiry and a broader risk-off shift across global markets.
The world’s largest cryptocurrency dropped as much as 5% to $65,547, slipping below the $66,000 mark and extending recent weakness.
The move comes as Bitcoin remains range-bound between roughly $60,000 and $75,000 in recent weeks, well below its October 2025 peak of around $126,000.
The latest decline coincided with falling US stocks and rising oil prices, as investors grappled with geopolitical uncertainty tied to the Iran conflict and its implications for inflation and growth.
Options expiry removes key price support
A key driver of the latest move was the expiry of roughly $14 billion in Bitcoin options on Friday, marking one of the largest quarterly rollovers in the derivatives market.
“With the expiry behind us, the price pin has faded, and the market is beginning to show its true directional intent,” said Pratik Kala, a portfolio manager at Apollo Crypto, a digital-asset hedge fund in a Bloomberg report.
The removal of this so-called “price pin” has left Bitcoin more exposed to directional moves, with traders now repositioning amid a more uncertain macro backdrop.
Data from Deribit shows that the highest open interest is now concentrated in $60,000 put options, instruments typically used to hedge against downside risk.
The put/call ratio has climbed to 1.3 over the past 24 hours, signaling increased demand for protection against further declines.
Liquidations have also accelerated, with about $450 million wiped out in the past day, reflecting heightened volatility in derivatives markets.
Bearish positioning builds across derivatives
Positioning data suggests a growing tilt toward bearish bets across the crypto market.
Long positions have borne the brunt of recent liquidations, with nearly $300 million in bullish futures bets erased in the past 24 hours, compared with just $50 million in short positions.
This marks the fifth time in 10 days that long liquidations have approached such levels, indicating that traders had been positioned for a rally tied to geopolitical developments that have failed to materialize.
XRP futures provide a clear example of this shift. Prices fell more than 2.5% even as open interest rose by 2% to 1.95 billion tokens, the highest level since early February.
That combination points to increasing short interest in a falling market.
Across major tokens—including bitcoin, solana, dogecoin, and BNB—derivatives metrics such as negative funding rates and declining cumulative volume delta reinforce the bearish tone.
At the same time, Bitcoin and Ethereum implied volatility indices have continued to fall, suggesting traders are not yet pricing in a sharp or disorderly selloff.
Macro pressures and ETF outflows weigh on sentiment
Beyond derivatives, broader macroeconomic pressures are also weighing on Bitcoin. Rising oil prices—hovering above $100 per barrel—and fears of a prolonged conflict in the Middle East have dampened appetite for risk assets.
Wall Street has mirrored this cautious tone, with the S&P 500 on track for its longest weekly losing streak since 2022 and the Nasdaq 100 entering correction territory.
Investor flows into crypto-linked products have also turned volatile.
While March has seen about $1.4 billion in net inflows into Bitcoin exchange-traded funds, recent sessions highlight fragility.
Investors withdrew $171 million from spot ETFs on Thursday, while total outflows across crypto-focused ETFs reached $260 million.
The iShares Ethereum Trust ETF saw roughly $140 million in outflows, the largest in two months.
For now, Bitcoin remains caught between competing forces: macro uncertainty, shifting derivatives positioning, and fragile investor sentiment.
While a ceasefire in the Middle East could lift prices and unwind bearish bets, the current setup suggests the market is bracing for further downside risks in the near term.