Bitcoin turns bearish after options expiry…risk-off sentiment spreads

Bitcoin (BTC) is extending losses following a large wave of options expiries, with defensive risk sentiment appearing to spread across the broader market.

As of 8:53 p.m. KST on the 27th, Bitcoin was trading at $66,651, down 4% from the previous day, according to CoinMarketCap.

Bloomberg attributed the move to “the impact of investors building positions to brace for declines after a large set of expiries recently hit the options market.”

About $14 billion worth of Bitcoin options contracts expired in the options market on the day.

Open interest in the options market was found to be concentrated in put options with a $60,000 strike. A put option refers to the right to sell an asset at a specified price. It is a strategy frequently used as a hedging tool against price declines. Over the past 24 hours, the put-to-call ratio stood at 1.3, indicating increased demand for downside protection.

In the market, analysts say investor sentiment is being pressured by the possibility of a prolonged war in the Middle East, stagflation concerns and the prospect of additional rate hikes.

Griffin Ardern, co-founder of Primals Fund, said, “Investors are increasingly preparing for bearish scenarios, reflecting a prolonged war and the possibility of forced rate hikes.”

Pratik Kala, a portfolio manager at Apollo Crypto, said, “With the price-pinning effect fading after options expiry, the market is beginning to show a clearer directional bias.”