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Analysts issue stark Bitcoin warning after largest 2026 options expiry
Top crypto options exchange Deribit settled Bitcoin (BTC) options worth $14.16 billion at 08:00 UTC on March 27. The largest option expiry in 2026 wiped out around 40% of open positions on the exchange, and it took place amidst the war between the U.S.-Israel and Iran.
Options are contracts that grant investors different types of rights. Calls provide the right to purchase an asset at a specific price within a specific period (bullish scenario), and puts provide the right to sell an asset at a specific price within a specific period (bearish scenario).
As $14 billion worth of options expired on Deribit, Bitcoin fell 5% in 24 hours to as low as $65,720 on March 27. Meanwhile, the demand for Bitcoin put options premiums is much higher than the demand for call premiums on Deribit. It means Bitcoin investors are betting more on a Bitcoin crash than a surge.
Analyst warns Bitcoin may retest $60K
Illia Otychenko, the lead analyst at the CEX.IO crypto exchange, noted that events like the largest Bitcoin options expiry tend to suppress volatility beforehand. But once the dust settles, macro and sentiment take the wheel; right now, both are bearish, he added.
Otychenko highlighted that the put/call ratio is above 0.62 and funding rates on Bitcoin futures are deeply negative. It means "bearish bets are firmly in control," he added. The analyst pointed to the Bitcoin price drop, with it drifting to the lower boundary of the ascending channel it has held since early February. If that level breaks, Bitcoin may retest $60,000, Otychenko warned.
Another analyst warns of sharper Bitcoin price swings
Lacie Zhang, market analyst at Bitget Wallet, stated that institutional investors have spent much of this quarter selling upside Bitcoin exposure to generate yield in a subdued environment, effectively transferring risk to market makers. Such behavior has suppressed volatility and capped directional momentum, but that structural cushion may fade as these contracts expire, she added.
It will make Bitcoin more exposed to macro and geopolitical forces, particularly amid ongoing Middle East tensions, Zhang warned. If Bitcoin can still reclaim and hold above $75,000, it could translate into a bullish sentiment, she said. Otherwise, Bitcoin could see sharper, less controlled price swings, she warned.
This article has been published in TheStreet.com via Yahoo News.
Analysts issue stark Bitcoin warning after largest 2026 options expiry
Top crypto options exchange Deribit settled Bitcoin (BTC) options worth $14.16 billion at 08:00 UTC on March 27. The largest option expiry in 2026 wiped out around 40% of open positions on the exchange, and it took place amidst the war between the ...
finance.yahoo.com
