Bitcoin fell to its lowest level in over two weeks as traders turned cautious following the year’s largest options expiration, Bloomberg reported. At the moment of writing, BTC trades in the high $66k.
Bitcoin Options Market Turns Defensive
The decline followed roughly $14 billion in notional Bitcoin options rolling off on Friday — the biggest expiry of 2026 so far. About 30–40% of front‑month open interest was wiped out in one session, leaving a cleaner positioning landscape. Spot volumes rose versus the prior session (roughly +10–20%), indicating the move reflected more than just options mechanics.
Primal Fund co‑founder Griffin Ardern said positioning shows traders are bracing for a drawn‑out conflict; risks like stagflation and potential “forced rate hikes” have deepened bearish sentiment. After the expiry, more participants were buying protection than betting on upside: options flows skewed toward puts, and the put/call ratio climbed to about 1.3 over the past 24 hours, signaling increased demand for downside protection ahead of the weekend.
Derivatives Positions Hold The Key
According to Fortune, derivatives positioning helps explain the recent price action. James Harris, CEO of asset manager Tesseract, says institutional players spent much of Q1 selling upside calls to collect premium in a quiet market. That pushed risk onto market makers, who have been buying dips and fading rallies to hedge their books.
Those hedging flows have tended to smooth volatility, repeatedly pulling Bitcoin back toward the so‑called “max pain” zone around $75,000 where the most options expire worthless. In practice, hedging has acted like a magnet—supporting dips while capping rallies.
What Traders Should Watch Next
The shift toward defensive options positioning comes after a strong Q1; Bitcoin remains up double digits year‑to‑date despite the pullback. If elevated put/call ratios, negative skew and higher near‑term implied volatility persist, it may indicate traders are preparing for another leg lower rather than a quick buy‑the‑dip rebound.
Active traders should favor disciplined risk management: tighter stops on leveraged longs, selective hedging with short‑dated puts, and close monitoring of whether defensiveness eases or intensifies ahead of major macro or data catalysts.
At the moment of writing, BTC’s price has crashed under $67k. Source: BTCUSD on Tradingview
Cover image from Perplexity, BTCUSD chart from Tradingview