Home Bitcoin News Bitcoin Falls Below $110K Before $22 Billion Options Expiry

Bitcoin Falls Below $110K Before $22 Billion Options Expiry

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Bitcoin Falls Below $110K as $22B Options Expiry Looms

Bitcoin dropped under $110,000 on Friday, heading for a sharp weekly loss. Nearly $22 billion in cryptocurrency options were set to expire, fueling volatility in the market. Investor sentiment also stayed cautious ahead of a key U.S. inflation release.

Bitcoin Hits Six-Week Low

The world’s largest cryptocurrency was last down 1.8% at $109,552.6 as of 02:20 ET (06:20 GMT). Earlier in the session, Bitcoin slipped below $109,000, marking a six-week low.

The token was on track to lose over 5% this week, with most major altcoins also bracing for steep declines.

Options Expiry Adds Pressure

Friday’s 08:00 UTC options expiry closed out the third quarter, adding further selling pressure. According to Deribit, over $17 billion in Bitcoin options were due to expire, with much of the open interest tied to bullish contracts.

Such large expirations often drive higher volatility, especially if Bitcoin fails to hold key support levels.

Earlier in the week, nearly $1.5 billion was liquidated in crypto markets as derivative bets unwound. Analysts noted that options traders, who profit from sharp swings, intensified the sell-off.

Fed Policy and Inflation Data in Focus

U.S. economic data also weighed on crypto sentiment. Second-quarter GDP growth was revised higher to 3.8% annualized, reducing expectations of aggressive Federal Reserve rate cuts.

Markets are now awaiting the release of the PCE inflation index, the Fed’s preferred measure of price pressures. Sticky inflation could mean the Fed keeps policy tighter for longer.

Crypto Miner TeraWulf Eyes $3B Raise

Separately, TeraWulf Inc. (NASDAQ: WULF) announced plans to raise $3 billion for expanding its data centers. The deal, backed by Google (NASDAQ: GOOGL), could be arranged through Morgan Stanley in either the leveraged loan or high-yield bond markets, Bloomberg reported.

Altcoins Extend Losses

Altcoins followed Bitcoin lower.

  • Ethereum dropped 1.9% to $3,922.83, near a seven-week low, and was set for a 12% weekly decline.
  • XRP slid 3.4% to $2.75.
  • Solana fell 4%, Cardano lost 2.4%, and Polygon slipped 1%.
  • Meme tokens also retreated, with Dogecoin down 3% and $TRUMP losing 1.3%.

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