Bitcoin (BTC) extended its decline on Friday, as traders reacted to the year’s largest options expiry and continued caution in crypto ETF flows. The asset fell to as low as $65,500, its weakest level since March 2. At the time of writing, BTC traded near $66,300, down 2% over 24 hours and 6% over the past week (per CoinGecko’s data).
Options Expiry Heightens Market Pressure
The move came as roughly $14 billion in Bitcoin options expired, based on open interest. That expiry added pressure to an already cautious market and pushed traders toward a more defensive stance during the session. Market participants widely view the event as a core driver of short-term volatility, further weighing on price action.
ETF Outflows Add to Headwinds
ETF activity also remained in focus. Data showed that investors withdrew $171 million from spot Bitcoin ETFs on Thursday, adding to short-term pressure on price. However, the broader monthly picture looked more balanced: March recorded about $1.4 billion in net inflows into Bitcoin ETFs after four straight months of net outflows, indicating that demand hasn't fully disappeared despite the latest setback.
On-Chain Data Shows Continued Accumulation
While price remained under pressure, on-chain data pointed to continued buying from large holders and smaller wallets. According to Santiment, wallets holding between 10 and 10,000 BTC added 61,568 BTC over the past month, a 0.45% increase. Smaller holders also showed similar behavior: wallets with less than 0.01 BTC increased their balances by 0.42% over the same period, nearly matching the pace among whales and sharks. This accumulation suggests long-term holders are undeterred by short-term declines and view them as buying opportunities.
Analysts Eye Oversold Bounce Potential
Current pricing leaves Bitcoin 47.42% below its October 2025 all-time high of $126,000, with market capitalization near $1.33 trillion. Market watchers point to oversold signals on technical indicators. Crypto analyst XO noted that if March closes in the red, it would mark only the second time Bitcoin posts six straight losing months. He wrote: “If April sees an early sweep into the $55–60K range, it could create a compelling setup for mean-reversion longs.” He added that the higher timeframe trend would stay in control unless a clear structural shift appears. Investors will closely monitor next week’s price action and ETF flows for directional cues.