Bitcoin crashes 4% as $14B Deribit expiry sparks mass liquidations
Bitcoin faced sharp declines on March 27 as a record $14.16 billion options settlement on Deribit triggered widespread liquidations. The sell-off wiped out 40% of the platform's open contracts and pushed prices down by over 4%. Analysts now warn of further bearish pressure amid rising geopolitical tensions and weak market sentiment.
The turmoil began at 08:00 UTC when Deribit processed its largest Bitcoin options expiration to date. The $14.16 billion settlement accounted for roughly 40% of the exchange's total open interest, forcing a sudden unwinding of positions. Within an hour, leveraged long liquidations surpassed $115 million, accelerating Bitcoin's drop.
Prices fell by more than 4%, with Bitcoin stabilising between $65,720 and $66,030. The decline came as traders braced for deeper losses, with the put-to-call ratio climbing above 0.62—a sign that bearish bets now outnumber bullish ones. Veteran trader Peter Brandt pointed to a rising wedge pattern, suggesting potential support tests at $60,000 or even $49,000. Macroeconomic headwinds added to the pressure. Escalating Middle East conflicts, including airstrikes and regional clashes since late February 2026, have driven investors toward the dollar and away from riskier assets like cryptocurrencies. Illia Otychenko of CEX.IO described the current climate as overwhelmingly bearish, citing both weak fundamentals and souring sentiment. Long-term forecasts remain mixed. While some analysts, like Ted, project a possible dip below $50,000 in Q2 2026, they also anticipate a sharp rebound to $100,000 by year-end. For now, however, $60,000 looms as a critical level to watch.
The March 27 options expiry has left Bitcoin vulnerable to further downside, with liquidations and geopolitical risks weighing on the market. Traders are now focused on whether $60,000 will hold as key support, while analysts continue to monitor shifts in derivatives positioning and capital flows.
