Bitcoin extended its decline Friday, dipping below $110,000 as traders braced for the expiration of nearly $22 billion in cryptocurrency options. The move put the world’s largest token on track for a weekly loss exceeding 5%, marking one of its steepest pullbacks in recent months.
As of 02:20 ET (06:20 GMT), Bitcoin traded at $109,552.60, having briefly touched a six-week low under $109,000 earlier in the session. The downturn came alongside broad weakness in digital assets, with altcoins facing heavy weekly losses.
Market analysts linked the pressure to both derivatives-driven volatility and shifting expectations for U.S. monetary policy.
$22B Options Expiry Stirs Volatility
Friday’s options expiry at 08:00 UTC coincided with the close of the third quarter, magnifying market turbulence. According to Deribit, more than $17 billion in Bitcoin-linked contracts were set to expire, with a majority skewed toward bullish bets.
Such expirations can amplify price swings if critical support levels fail, particularly after a week dominated by heavy liquidations in the derivatives market. Nearly $1.5 billion in positions were wiped out earlier this week, underscoring the risks of leveraged trading.
Key market drivers included:
- Expiration of $22B crypto options, including $17B in Bitcoin.
- High concentration of bullish contracts at risk of being devalued.
- Broader market sell-off tied to forced liquidations.
These factors kept volatility elevated, leaving traders wary of potential weekend swings.
Fed Policy and Altcoins Under Pressure
Adding to the headwinds, fresh U.S. economic data fueled speculation the Federal Reserve may move cautiously on rate cuts. Second-quarter GDP was revised higher to 3.8% annualized growth, while jobless claims also showed resilience. Investors now await the Personal Consumption Expenditures (PCE) inflation index, due Friday, for further policy cues.
Meanwhile, altcoins tracked Bitcoin lower:
- Ethereum slipped 1.9% to $3,922.83, down more than 12% this week.
- XRP lost 3.4% to $2.75.
- Solana declined 4%, Cardano 2.4%, and Polygon 1%.
- Dogecoin dropped 3%, while $TRUMP token retreated 1.3%.
Separately, TeraWulf Inc. (NASDAQ: WULF) announced plans to raise about $3 billion for data center expansion, supported by Google and arranged by Morgan Stanley. The financing could involve either high-yield bonds or leveraged loans, according to Bloomberg.
Conclusion:
Bitcoin’s latest decline reflects a confluence of technical, economic, and regulatory factors. With $22 billion in options expiring and critical inflation data due, traders face heightened uncertainty that could set the tone for crypto markets into October.