Bitcoin drops below $110K ahead of $22B options expiry; altcoins tumble

Bitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.

At 02:20 ET (06:20 GMT), the world’s largest cryptocurrency traded 1.8% lower at $109,552, after briefly touching a six-week low below $109,000. Bitcoin is on pace to lose more than 5% for the week, while major altcoins also faced heavy declines.

Options expiry and derivatives pressure
The quarterly options expiry at 08:00 UTC on Friday put additional pressure on prices. Data from Deribit showed over $17 billion in Bitcoin options contracts were set to expire, with a large share of bullish bets. Analysts warned that such a large expiration could increase volatility if key support levels fail to hold.

Earlier this week, Bitcoin’s decline accelerated after nearly $1.5 billion was liquidated in the crypto derivatives market. Traders holding leveraged options positions that benefit from sharp price swings contributed to the sell-off, underscoring persistent volatility in digital assets.

Macro factors in focus
Adding to the pressure, stronger U.S. economic data dampened expectations of aggressive Federal Reserve rate cuts. Second-quarter GDP growth was revised upward to 3.8% on Thursday, fueling speculation that the Fed may ease policy more cautiously. Investors are now looking ahead to the Personal Consumption Expenditures (PCE) inflation report for further signals.

TeraWulf eyes $3B funding round
Separately, crypto miner TeraWulf Inc. (NASDAQ: WULF) plans to raise around $3 billion to expand its data centers, according to Bloomberg. CFO Patrick Fleury said the structure will be backed by Google (NASDAQ: GOOGL), with Morgan Stanley arranging the potential deal, which could be issued through the high-yield bond or leveraged loan markets.

Altcoins under pressure
Ethereum fell 1.9% to $3,922, hovering near a seven-week low and down more than 12% on the week. XRP slid 3.4% to $2.75, Solana dropped 4%, Cardano lost 2.4%, and Polygon slipped 1%. Meme tokens were not spared, with Dogecoin down 3% and $TRUMP down 1.3%.