Bitcoin dropped below a key psychological level as renewed Middle East uncertainty collided with one of the largest quarterly options expiries in recent years on Deribit. Market data showed BTC falling to an intraday low of $66,201 early Friday U.S. Eastern Time, marking its first break below $67,000 since March 9. Although the asset later recovered toward $66,700, most of its gains from the first three weeks of March had already been erased.
Geopolitical uncertainty pressures risk appetite
The move came as traders reassessed the White House’s shifting stance on the Middle East. Reports that President Donald Trump had delayed a potential strike on Iranian energy infrastructure by ten days failed to trigger the relief rally some investors had anticipated. Instead, the delay appeared to deepen concerns over policy unpredictability and the possibility of further regional escalation.
That caution was especially visible in crypto, even as traditional equity markets in Europe and Asia were broadly steady. Aside from Germany’s DAX, which fell more than 1%, major indexes showed limited reaction. The contrast underscored how digital assets remain more exposed to short-term sentiment swings and leverage-driven flows.
$14.16 billion options expiry adds structural pressure
Beyond geopolitics, analysts pointed to Deribit’s impending $14.16 billion bitcoin options expiry as a major structural headwind. The quarterly rollover represents nearly 40% of the exchange’s total open interest, making it one of the largest such events in recent memory. According to Greeks.live, the “max pain” level for the expiry stands near $75,000.
In options markets, max pain refers to the strike level where the largest number of contracts expire worthless. When spot prices remain well below that level, dealer delta-hedging can influence market behavior, often dampening upside and keeping price action pinned in a narrow, weaker range until contracts are settled.
Liquidations spread across the crypto market
The sharp drop also triggered a wave of forced liquidations. In just the past four hours, nearly $115 million in bitcoin long positions were wiped out. Over a full 24-hour period, losses for BTC longs expanded to about $169 million. Across the broader digital asset market, almost $400 million in long positions were liquidated, highlighting the systemic effect of leveraged selling cascading through exchanges.
As bitcoin retreated, its standalone market capitalization slipped to roughly $1.33 trillion, dragging the total crypto market value down to about $2.37 trillion. For now, traders are likely to keep watching two main catalysts: further developments in Middle East geopolitics and the market impact of the large options settlement.