Bitcoin slumped below $66,300 during Friday's early trading, marking its lowest level since March 9, as geopolitical headwinds and a looming options expiry crushed sentiment. The leading cryptocurrency touched a session low of $66,201 around 7 AM EST before recovering modestly to $66,700, effectively wiping out almost all gains from the first three weeks of March.
Trump's Iran Pause Fails to Calm Markets
President Donald Trump's latest 10-day reprieve from potential strikes on Iranian energy infrastructure did little to instill confidence. While a previous 5-day pause had sparked a brief rally on Monday, the extension was met with collective shrugs from traders, who view the erratic policy as more destabilizing than decisive. After a monthlong aerial campaign failed to trigger domestic unrest in Tehran, analysts suggest the administration is seeking a face-saving exit—but hardliners oppose withdrawal as long as Iran controls the Strait of Hormuz. Some officials are reportedly pushing for ground troops, an escalation the White House publicly wishes to avoid.
$14.16B Options Expiry Adds Structural Pressure
Adding to the bearish mix, Deribit saw $14.16 billion in Bitcoin options expire this Friday, representing nearly 40% of the exchange's total open interest—one of the largest quarterly rollovers in recent years. Data from Greeks.live shows the "max pain" point for this expiry sits near $75,000. With spot prices far below that level, institutional dealers' delta hedging tends to suppress volatility and pin prices in a narrow downward range until contracts clear.
Liquidations: $169M in Bitcoin Longs Erased in 24 Hours
The sudden drop triggered a wave of forced selling. Within four hours, nearly $115 million in Bitcoin long positions were liquidated, and the toll rose to approximately $169 million over the full 24-hour period. Across the broader crypto market, nearly $400 million in long positions were wiped out, highlighting the systemic impact of cascading liquidations through major exchanges. Bitcoin's market cap fell to $1.33 trillion, dragging the total crypto market valuation to a precarious $2.37 trillion.
Traditional Markets Largely Unmoved
While crypto markets whipsawed, equities in Europe and Asia were mostly flat, with the DAX being the only major index losing more than 1%. The divergence underscores that geopolitics and options mechanics are hitting crypto disproportionately. Traders now eye the expiry and any clarity on US policy in the Middle East for the next directional move.