Bitcoin Slumps As Traders Turn Defensive: Options Market Flashes Red Warning Signal

Bitcoin fell to its lowest level in over two weeks as traders adopted a more cautious stance after the year’s biggest options expiration, Bloomberg reported. At the moment of writing, BTC trades for the highs $66k. Related Reading: GameStop Didn’t Sell Bitcoin — What It Did Instead Will Anger BTC Maxis Bitcoin Options Market Turns Defensive The drop followed the largest Bitcoin options expiry of 2026 so far, with roughly $14 billion in notional contracts rolling off on Friday. Around 30–40% of open interest in front‑month Bitcoin options was wiped out in a single session, leaving a “cleaner” positioning landscape. Spot volumes picked up versus the previous session (e.g. +10–20%), suggesting the move was driven by more than just options mechanics. Positioning shows traders are bracing for a drawn‑out conflict, Griffin Ardern, co‑founder of multi‑asset manager Primal Fund, said. The risk of stagflation, and even “forced rate hikes” has sharply deepened bearish sentiment. Post‑expiry, mor