Bitcoin is facing a massive expiration of options contracts
Zero hour for the world's largest cryptocurrency is approaching, as the countdown to one of the most critical 24-hour periods in its history has already begun. Bitcoin is "targeted" by a multi-billion dollar financial storm, with investors holding their breath at the prospect of a new bloodbath. In less than 24 hours, a $10 billion "bomb" is expected to explode in the derivatives market, threatening to crush Bitcoin's defenses.
Expiration of $10 billion in options
More specifically, Bitcoin is facing a massive expiration of options, a development that risks exerting further pressure on a market already struggling with weakening institutional demand and macroeconomic problems. Bitcoin options with a nominal value of approximately $10 billion are set to expire on Deribit, the largest cryptocurrency options exchange, on Friday (6/26/2026). As most of these options are bullish bets and Bitcoin is recording a decline, there is a possibility that investors will adopt more defensive or bearish positions. "This is a portfolio that was positioned for higher prices in the medium term, which is now being valued against a spot price (current value) that has retreated," said Jean-David Pequignot, commercial director at Deribit.
Collapse below $60,000
Bitcoin fell below $60,000 in New York trading on Wednesday (6/24/2026), reaching $59,023, its lowest level since October 2024. It is struggling to find stable ground after the market crash on October 10 and has fallen more than 50% from its all-time high. The largest cryptocurrency is below its 200-week moving average, a technical level that can signal a prolonged bear market. The Bitcoin options expiring on Deribit represent about 37% of open interest, i.e., the total number of contracts that are currently active.
Low market liquidity
Of course, "the expiration mechanism clears positions, it doesn't determine the direction," said Adam Haeems, head of asset management at Tesseract Group. However, the main issue remains that a call-skewed market is falling during a period of low liquidity, due to the end of the quarter and the summer season, he added. "Shallow order books combined with a concentrated expiration mean that Friday’s move will likely overshoot in whichever direction the flow leans first, and will then revert to the mean once market maker hedging relaxes," said Haeems. Dealer hedging refers to the transactions used by specialists to manage their exposure as prices move. Any sharp move around the expiration may reflect investor positioning more than a lasting change in the trend. Haeems noted that the most significant test will come in the first full week of July, after the quarterly portfolio has been cleared and leverage has been reduced.
The situation has deteriorated beyond derivatives
US Bitcoin ETFs have recorded net outflows of nearly $3 billion so far in June, according to data compiled by Bloomberg. Strategy Inc, the largest corporate holder of Bitcoin, is also under pressure amid investor concerns about its ability to meet its financial obligations. Macroeconomic pressures are also weighing on cryptocurrencies, as the prospect of higher interest rates steers capital away from assets that do not pay dividends or interest. Griffin Ardern, co-founder of Primal Fund, stated that the long-term bearish trend of options traders against Bitcoin has intensified, while hawkish comments from the Fed and increased government bond yields suggest that investors are pricing in tighter liquidity. "Under conditions of shrinking liquidity, Bitcoin usually doesn't perform that well," he concluded.
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