Bitcoin fell below $68,000, down nearly 4% in 24 hours, as rising tensions in Iran and a massive $14 billion option expiry weighed on the market. The move triggered a widespread crypto sell-off, with major altcoins down 4% to 5% while traders shifted to a risk-off stance amid heightened macro uncertainty.
Bitcoin falls below $68,000 as Iran tensions rise
Bitcoin price fell below $68,000 after falling below the crucial $70,000 mark amid heightened geopolitical tensions in the Middle East. Reports of a potential escalation involving the US, Israel and Iran dampened investor sentiment and prompted traders to reduce risk exposure.
As a result, Bitcoin has started to behave more like a risk asset, reacting quickly to global uncertainties and oil price fluctuations.
As rumors of a ceasefire surfaced, the market briefly took a moment of relief, sending Bitcoin above $70,000. However, the rally quickly disappeared, confirming that the buying momentum was weak. The rejection also highlighted how sensitive the crypto market has become to geopolitical headlines.
$14 Billion Bitcoin Options Expiry Increases Volatility
Bitcoin is also scheduled to have its largest option expiry in 2026, with approximately $14 billion in contracts set to expire. This represents nearly 40% of Deribit’s total open interest and is a major source of volatility in the short term.
The current maximum pain level is around $75,000, and price movement is likely to remain volatile as traders hedge their positions. Large expirations often cause mechanical price fluctuations, pulling Bitcoin towards a certain level and increasing short-term uncertainty.
Market sentiment declined as the deadline expired. The Crypto Fear & Greed Index has dropped to a score of 13, “extreme fear,” indicating increased caution among traders.
Cryptocurrency market falls as liquidation amount exceeds $240 million
Bitcoin hasn’t been doing very well before today. Prices have fallen about 6% in the past seven days. The recent volatility has also been caused by more than $240 million in liquidations during the week.
In fact, the entire cryptocurrency market has fallen. Ethereum, XRP, Solana, BNB, and several other stocks experienced 4% to 5% declines in the past 24 hours.
Interestingly, whales have accumulated around 61,000 BTC recently, and the Bitcoin ETF still raised $2.5 billion in the last month.
Related: $17B Crypto Options Set to Expire on Friday as Bitcoin Faces Volatility Test
