Bitcoin's price retreated sharply on Friday, nearing its March low of around $65,400, as a massive wave of options worth $14 billion was set to expire. This marks the biggest options expiry of the year, creating significant gravitational pull in the market.
Max Kahn, CEO of Digital Wealth Partners, explained: "What these expiries actually do is create gravitational pull in the days leading up to them. Market makers hedging their books push price toward max pain, which is why bitcoin tends to go sideways before a major expiry."
The 'max pain' level—where the largest number of expiring options become worthless—is around $75,000. Once the expiry clears, hedging pressure disappears, potentially leading to volatility spikes as positions unwind.
Kahn noted that while the options wave accelerates existing trends, it doesn't fundamentally change the bigger picture: "The expiry accelerates whatever's already happening; it doesn't flip it." He emphasized that ETF flows and broader liquidity are actually driving the trend.
Bitcoin Liquidations and MARA's Strategic Shift
Coinglass data revealed roughly $462 million in bullish bitcoin long positions were liquidated over the past 24 hours, with about $51 million in short positions also liquidated.
Meanwhile, MARA Holdings announced it raised approximately $1.1 billion by selling 15,133 bitcoin between March 4 and March 25. The company plans to use proceeds for repurchasing $1 billion in senior notes, with the remainder for general corporate purposes.
CEO Fred Thiel stated the transaction "enhances financial flexibility" as MARA expands beyond pure-play bitcoin mining into digital energy and AI/HPC infrastructure. As of December 31, MARA held 53,822 bitcoin, including 15,315 bitcoin loaned or pledged as collateral.
Cathie Wood's Cash Rotation Strategy
Cathie Wood and ARK Invest have been trimming stock holdings while making minimal purchases over the past two days. The firm only purchased Tempus AI (TEM) stock during this period, adding 145,912 shares worth $6.74 million.
ARK's notable sales included Archer Aviation (ACHR), Bullish (BLSH), and Recursion Pharmaceuticals (RXRX). Wood also sold 495,000 shares of the ARK 21Shares Bitcoin ETF (ARKB), worth $11.25 million. The fund has declined 24% since the beginning of the year.
This strategic rotation into cash comes as bitcoin's price remains rangebound between $63,000 and $76,000 since early February, with Middle East upheaval adding to market uncertainty.
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