Bitcoin fell 5% in 24 hours to as low as $65,720 on March 27 following the largest Bitcoin options expiry of 2026. According to TheStreet, Deribit settled Bitcoin options worth $14.16 billion at 08:00 UTC on March 27, which wiped out around 40% of open positions on the exchange. The expiry took place amid the ongoing war between the U.S.-Israel and Iran, creating additional geopolitical pressure on the cryptocurrency. As TheStreet reports, Bitcoin price on March 27 reflects the immediate impact of this major options settlement, with the cryptocurrency testing key support levels. The broader market context shows the Dow Jones Industrial Average plunged into official correction territory, shedding over 10% from its recent peak as escalating geopolitical tensions surrounding the Strait of Hormuz fueled a broad-based market selloff.
Illia Otychenko, lead analyst at CEX.IO crypto exchange, told TheStreetRoundtable that events like the largest Bitcoin options expiry tend to suppress volatility beforehand, but once the dust settles, macro and sentiment take control. Otychenko warned that if Bitcoin breaks below the current level, it may retest $60,000, highlighting the significant downside risk facing the cryptocurrency. He noted that the put/call ratio is above 0.62 and funding rates on Bitcoin futures are deeply negative, indicating that bearish bets are firmly in control. The analyst pointed to Bitcoin price drifting to the lower boundary of the ascending channel it has held since early February, suggesting the cryptocurrency is testing critical technical support levels. The current market environment reflects the CBOE Volatility Index (VIX) spiking by over 35%, indicating heightened fear among investors as geopolitical risks intensify.
According to TheStreetRoundtable, Lacie Zhang, market analyst at Bitget Wallet, warned 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. Zhang noted that if Bitcoin can still reclaim and hold above $75,000, it could translate into a bullish sentiment, while otherwise, Bitcoin could see sharper, less controlled price swings. The analyst warned that over the past few weeks, markets had a habit of pricing in fresh geopolitical risk into the weekend, and with Middle East tensions still unresolved, BTC could slide further. The current correction environment has made institutional selling even more pronounced, with investors rapidly de-risking portfolios and moving toward traditional safe-haven assets like U.S. Treasury bonds and gold.
As reported by AInvest News, onchain data indicates aggressive selling from both retail and whale wallets, pushing Bitcoin below $72,000 with an Accumulation Trend Score near 0 indicating widespread distribution. This onchain activity contrasts sharply with the ETF inflows, suggesting a divergence between institutional and retail sentiment. The widespread distribution among both retail and whale participants indicates a broad-based move toward distribution rather than accumulation, despite the positive ETF flows that have improved net outflow for the year. The current options expiry adds another layer of selling pressure, with demand for Bitcoin put options premiums much higher than call premiums on Deribit, indicating investors are betting more on a Bitcoin crash than a surge. The broader market context shows the selloff exhibited distinct characteristics common to geopolitically-driven events, with energy sector stocks experiencing volatile swings before weakness spread to industrials, transportation, and consumer discretionary sectors.
According to crypto.news, David Sacks' transition from his White House AI and crypto role has emerged as a key topic in crypto discussions this week. Sacks stepped down from his position after reaching the 130-day limit for special government employees and is moving into a broader advisory role as co-chair of the President's Council of Advisors on Science and Technology. This shift represents a move away from direct crypto policy influence toward a wider technology brief, creating uncertainty about future regulatory direction. The political transition adds another layer of uncertainty to an already volatile market environment, with Middle East tensions still unresolved creating additional geopolitical risk factors that analysts warn could further pressure Bitcoin prices. The current correction reflects a complex calculus involving energy security, inflation, and growth prospects, with the Strait of Hormuz being the world's most critical oil transit chokepoint where approximately 21 million barrels of oil pass through daily.
