Bitcoin fell to a low of $65,025 on Friday as the largest options expiry of 2026 (notional value $14.16 billion) converged with rising geopolitical tensions in the Middle East. The leading cryptocurrency dropped from a 24-hour high near $67,000 and was last trading at $66,485, down 0.07% on the day. Ethereum also took a hit, dipping to $1,985 before recovering to around $2,004.
89,167 Traders Liquidated, Longs Bear the Brunt
Across the broader market, total forced liquidations surged to $311.28 million in the past 24 hours — a 137.70% jump from the previous day. Data shows 89,167 traders were wiped out, with long positions accounting for $237.57 million (76.3%) of the total, versus just $73.72 million in short liquidations. The lopsided ratio suggests the sell-off was largely driven by the forced unwinding of leveraged long positions.
The single largest liquidation order occurred on Bybit's BTCUSD perpetual contract, worth $9.8 million. By asset, Bitcoin led with combined longs and shorts of $120.47 million, followed by Ethereum at $90.97 million. SOL saw $21.82 million in liquidations, XRP $5.95 million, DOGE $3.37 million, and ADA $2.17 million.
Bybit topped the 4-hour exchange liquidation ranking with $73.51 million (79.85% long positions), followed by Hyperliquid at $49.53 million — which posted the highest long-to-short ratio at 92.06%. Gate.io and Binance recorded $28.4 million and $27.52 million in liquidations, respectively.
Triple Headwind: Options Expiry, Iran Conflict, Fed Hawkishness
Friday's sharp decline was not driven by a single catalyst but a confluence of pressures.
First, the March 27 expiry of $14.16 billion in Bitcoin options (the largest in 2026 so far) exerted forced hedging and unwinding pressure that dragged spot prices to test the $65,720 support zone.
Second, the U.S.-Iran conflict escalated further. The Pentagon has reportedly begun preparations for ground operations, a U.S. military base in Saudi Arabia was hit by a missile, and market pricing for the reopening of the Strait of Hormuz now stands at only 24%. Oil prices surged above $100 per barrel, reigniting inflation fears and piling pressure on risk assets.
Third, the Fed held rates at 3.50-3.75% after its March 18 FOMC meeting while raising its 2026 inflation forecast, maintaining a hawkish tone. Meanwhile, Cathie Wood's ARK Invest sold off tech shares for two consecutive days — including roughly 58,000 shares of NVIDIA and some AMD — totaling nearly $100 million, fueling concerns over shrinking risk appetite.
Altcoins Show Mixed Performance; HYPE Drops Nearly 5%
While BTC and ETH softened, major altcoins exhibited divergent moves. SOL traded at $82.32, up 0.06%; XRP at $1.3367 (+0.13%); DOGE at $0.09156 (+0.65%), showing relative resilience.
The weakest performer was Hyperliquid's native token HYPE, which slid 4.91% to $37.61. Notably, Hyperliquid had the highest proportion of long liquidations (92.06%) among exchanges during this sell-off, indicating the platform's ecosystem took a direct hit.
Fear & Greed Index Hits 8, Historical Reversal Signal?
The Alternative.me Fear & Greed Index fell to 8 ("Extreme Fear"), matching last week's level and down from 9 a day earlier. Since 2018, the index has dropped below 15 on only 42 trading days. Historically, Bitcoin has posted gains 30 days later in 68% of those cases, with an average return of 18.4%. This is not a confirmed bottom but offers a contrarian reference point.
U.S. stocks deepened the gloomy mood. On Friday, the S&P 500 closed at 6,368.85 (-1.67%), the Nasdaq fell 2.15% to 20,948, and the Dow dropped 793 points (-1.73%) to 45,166 — all three indexes hit their lowest since last August. The S&P 500 also logged its fifth straight weekly decline, the longest such losing streak in four years.
Technically, the $66,000 level has held as support three times in 2026. If breached, the next major reference is $60,000. Glassnode data suggests a BTC accumulation structure exists between $60,000 and $70,000, but its force is weaker than at previous cycle peaks. JPMorgan noted that Bitcoin has passed the "digital gold" test, having lost nearly half from its all-time high of $126,000 while still maintaining relatively stable depth and liquidity.