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Bitcoin falls below $67,000 amid geopolitical tension and $14B options expiry
The price of Bitcoin fell below $66,300 for the first time since early March, driven by geopolitical uncertainty surrounding U.S. policy in the Middle East, as well as the expiration of $14.16 billion worth of options contracts on Deribit.
Options expiry
On Friday, Bitcoin broke a key psychological level, dropping below $67,000 for the first time since March 9. This decline occurred as market patience wore thin due to unpredictable White House actions in the Middle East, while traders prepared for a major quarterly derivatives settlement.
The latest ten-day delay by President Donald Trump regarding potential strikes on Iranian energy infrastructure failed to trigger the “peace rally” some investors had expected. Market data shows that the leading cryptocurrency dropped to an intraday low of $66,201 around 7 a.m. Eastern Time. Although the asset recovered modestly to $66,700, the damage was significant: Bitcoin has now lost nearly all gains accumulated during the first three weeks of March.
Beyond geopolitics, analysts point to a structural factor: the expiration of bitcoin options on Deribit worth approximately $14.16 billion. This quarterly rollover—one of the largest in recent years—accounts for nearly 40% of the exchange’s total open interest. According to Greeks.live, the “max pain” level for this expiry is around $75,000.
In options markets, “max pain” refers to the strike price at which the greatest number of contracts expire worthless. When the spot price is significantly below this level, delta hedging by institutional dealers often exerts a magnetic effect on the market, suppressing volatility and keeping prices within a narrow, often downward range until contracts are settled.
Divergence across global markets
While crypto markets reacted with sharp volatility, traditional equity markets in Europe and Asia remained largely unchanged. The DAX was the only major index to post losses exceeding 1%. Traders appeared to react to the latest extension with indifference, sharply contrasting with the optimism seen on Monday after Donald Trump announced an initial five-day pause.
The geopolitical situation remains tense. After a month-long air campaign failed to trigger internal unrest in Tehran, observers suggest that the Donald Trump administration is seeking an exit strategy that preserves credibility. However, hardliners within the U.S. government view any retreat as a strategic defeat while the Strait of Hormuz remains under the control of Iran. To avoid the perception of retreat, some officials are reportedly advocating a “ground operation”—an escalation the administration had publicly sought to avoid.
Meanwhile, the price drop triggered a wave of liquidations in the digital asset market. The market capitalization of Bitcoin fell to $1.33 trillion, bringing the total crypto market valuation down to an unstable level of $2.37 trillion.
In derivatives, the sudden drop wiped out nearly $115 million in long positions within just four hours. Over 24 hours, bitcoin long-position losses rose to approximately $169 million. Across the broader crypto market, nearly $400 million in long positions were liquidated, highlighting the systemic impact of forced selling as cascading effects spread across major exchanges.
See also: "Michael Saylor’s Strategy dominates Bitcoin purchases"
