Bitcoin Drops to $66K as $14 Billion Options Expire, 122,000 Traders Liquidated

Bitcoin dropped from $71,000 at the start of the week to $66,457 on Saturday — its lowest level since early March. The crypto market has shed over $80 billion in value since March 24.

The selloff picked up speed after Iran threatened to block a second global oil chokepoint, pushing oil above $103 and sending investors running from risk assets. This came on the same day as the largest crypto options expiry of 2026.

The $14 Billion Wipeout

On March 27, Deribit settled $14.16 billion in Bitcoin options — the largest quarterly expiry of 2026, wiping out nearly 40% of all open positions on the exchange.

The max pain level sat at $75,000, roughly $9,000 above where Bitcoin was actually trading. Most bullish positions didn't pay out. Bitcoin dropped 5% in 24 hours to as low as $65,720 as forced selling cascaded through the market.

Over 122,000 traders were liquidated. Total losses reached $451 million.

ETF Outflows Accelerate

Bitcoin ETF outflows hit $171 million on March 26 — the largest single-day outflow in three weeks. Ethereum ETFs posted $92.5 million in outflows the same day, their seventh consecutive negative session.

The Fear & Greed Index sits at 23 (extreme fear). The average crypto RSI has dropped to 39 — oversold territory the market hasn't seen since February's crash.

The Iran Factor

Iran threatened to block the Bab el-Mandeb strait — the Red Sea gateway that carries 12% of global seaborne oil — on top of the Strait of Hormuz, which has been effectively closed since late February.

Oil pushed above $103. The gold-to-crypto rotation that had been helping Bitcoin recover earlier in March reversed completely. Risk assets across the board sold off.

Macro Headwinds

The Federal Reserve's March 18 meeting revised its 2026 PCE inflation forecast from 2.4% to 2.7% — the largest single-year upward revision in recent cycles. Rate cut expectations have been pushed further out.

The 10-year Treasury yield has climbed back above 4.5%. Higher rates reduce the appeal of speculative assets like crypto that don't generate yield.

Where Bitcoin Goes From Here

Analysts watching for dip-buying opportunities have flagged two key support levels: the long-term holder realized price at $48,387 and the -0.2 standard deviation band at $36,657.

For over a decade, Bitcoin has kicked off new bull runs after dropping below these zones. Current prices are still well above both levels.

The immediate question is whether the Iran war de-escalates. If oil prices stabilize, risk appetite could return. If Iran follows through on closing a second chokepoint, expect more downside.