Bitcoin Crashes Below $77K, Triggers $657M in Liquidations as $6.25B Options Expire Today

Bitcoin just flash-crashed from $77,000 to roughly $73,200 in a matter of hours, triggering $657 million in forced liquidations — and today's $6.25 billion options expiry on Deribit is about to pour fuel on the fire.

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What Happened

Overnight, BTC sliced through key support levels at $76,200 and $75,500 like butter, setting off a cascade of stop-loss orders and long liquidations across futures exchanges. In total, $584 million of those liquidations came from long positions — meaning the bulls were overextended and the market punished them for it. The Fear & Greed Index collapsed from a neutral 50 to a fear reading of 29 in under 24 hours.

Compounding the technical breakdown: U.S. spot Bitcoin ETFs posted net outflows exceeding $1.5 billion over the past seven days, snapping what had been a strong streak of inflows. When the big-money exits, leverage gets squeezed out fast.

The $6.25 Billion Wildcard: Today's Options Expiry

Here's where it gets spicy. Today — May 29 — is the monthly options expiry on Deribit for approximately $6.25 billion in open interest. The reported 'max pain' level sits near $75,000, meaning options market makers have the most incentive to pin price around that level by expiry. Heavy call option exposure is clustered around $80,000. Traders have been hedging those calls by selling spot Bitcoin into weakness, which amplified the downside move overnight.

Once expiry clears, that selling pressure from options hedging evaporates — which is either a relief valve or a trap, depending on which way spot moves next.

Why It's Moving

The macro backdrop didn't help. Reports of U.S. military strikes on Iranian drone assets spooked risk markets broadly. Crypto, still correlated to risk sentiment in stress periods, got caught in the crossfire. A strengthening U.S. dollar added more headwind, pressuring Bitcoin's dollar-denominated price lower alongside oil and equities.

What's Next

Post-expiry, watch for a potential volatility squeeze in either direction. If BTC holds above $73,000 through today's expiry, bulls may attempt a relief bounce toward $76,000–$78,000. A break below $73,000 with sustained ETF outflows would open the door to a deeper flush toward the $70,000 level that's been discussed as a macro support zone. Either way, the next 12 hours are critical — keep your eyes on the screen and your hands off the leverage.

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