Bitcoin price just collapsed because the macro selloff collided with a $14 billion options expiry this morning
Bitcoin's price dropped sharply as a macro selloff, driven by oil price hikes and rising yields, coincided with a $14.1 billion options expiry.Summary
The Bitcoin price experienced a significant collapse, exacerbated by a confluence of negative macroeconomic factors—specifically surging oil prices above $105, higher Treasury yields, and the pricing out of 2025 Fed rate cuts amid Middle East tensions. This macro selloff collided with a massive $14.1 billion in BTC options expiring on Deribit, alongside $2.2 billion in ETH options. Roughly 40% of Deribit's BTC open interest rolled off in this single session. The settlement mechanism, a 30-minute Time-Weighted Average Price (TWAP) sampled every four seconds between 07:30 and 08:00 UTC, meant that market moves during this window directly influenced the final delivery price. Because dealer hedges on put positions require selling into a falling market, the expiry mechanics amplified the short-term breakdown, accelerating the price drop below $66,200 for BTC. Deribit's settlement rules carry significant weight due to its large market share, meaning the mechanics of this window rippled into the spot market, compounding the bearish pressure already established by macro forces.
(Source：CryptoSlate)