Trillions in options set to expire Friday as quadruple witching tests crypto resilience
Quadruple witching, a major derivatives expiration, arrives Friday, potentially increasing volatility in traditional and crypto markets like Bitcoin.Summary
Global markets are bracing for a multi-trillion-dollar quarterly derivatives event known as quadruple witching on Friday, occurring on the third Friday of March, June, September, and December, when stock index futures/options and single-stock futures/options expire simultaneously. This typically causes surges in trading activity and price swings, often concentrating in the final hour. This event occurs during an already volatile period marked by geopolitical conflict, high oil prices, and a spiking VIX index. Although originating in traditional finance, quadruple witching can impact crypto markets, as Bitcoin increasingly correlates with risk assets. Experts suggest this could trigger cross-asset volatility, potentially reflected in Bitcoin's implied volatility index. Historical data from 2025 suggests that while day-of performance for Bitcoin was muted, significant weakness often followed in the subsequent days or weeks. Furthermore, crypto markets face their own major quarterly derivatives expiry the following week on March 27.
(Source：CoinDesk)