Why Is Bitcoin Falling? The Market is in Collapse!

If you enter the cryptocurrency exchange, what will greet you will be a red market. Earlier in the day today, Bitcoin experienced a serious decline, dragging the market towards the abyss. Major altcoins Ethereum, BNB, Solana and other memecoins, which did not deviate from Bitcoin's trend, made a very significant correction with declines of 10% or more. So why is Bitcoin falling?

Why Is Bitcoin Falling?

As of writing, Bitcoin is trading at $66,200. The leading cryptocurrency has lost around 10% in value in the last 24 hours. The value of the global crypto market fell by more than 9% to $2.55 trillion.

The market fell in response to more than $3 billion worth of Bitcoin and Ethereum options expiry on Friday, March 15. The crypto market always witnesses huge fluctuations in options expiry.

Specifically, 30,568   BTC options with a notional value of $2.09 billion   will expire today. The call ratio is 0.79 and the maximum squeeze point is $66,000, indicating a profit-booking scenario for options traders while remaining bullish. BTC price dropped as low as $65,600, which is still higher than the maximum price. However, Bitcoin may witness a recovery due to the opportunity to buy the dip.

Meanwhile,  332,094   ETH options with a nominal value of $1.24 billion will expire with a put call ratio of 0.69. The maximum pain point is $3,550. Investors are particularly bullish on Ethereum but have managed to make profits above the maximum pain point. ETH price is trading at $3,630 after dropping to a 24-hour low of 3,656.

The crypto market has seen over $680 billion in market capitalization wiped out in recent liquidations amid a liquidity influx . Coinglass data shows that more than 192 thousand investors were liquidated in the last 24 hours, and   the largest BTC-USDT swap order worth $13.30 million was executed on crypto exchange OKX.

Long positions of approximately $543 million and short positions of $137 million were liquidated, while Bitcoin and Ethereum witnessed liquidations of over $242 million and $115 million. This caused the crypto market to bleed, but it also presented an opportunity to buy the dip.

Popular analyst  Michael van de Poppe  predicted a short-term liquidity influx amid Bitcoin's pre-halving rally. He added that bearish divergences on the lower time frame appear valid and suggested buying the dip in altcoins.