Bitcoin fell sharply at the U.S. cash market open on June 25, dropping almost $3,000 in seconds to $58,000, according to market data. That is the lowest level since September 2024.
The move coincided with an 8% decline in shares of Strategy (MSTR), the largest corporate holder of Bitcoin. The decline in MSTR was driven by put option activity at 9:30 a.m. when options trading opened, according to a ZeroHedge report.
The drop comes as about $10 billion in notional value of Bitcoin options is set to expire on Deribit, the largest crypto options venue, at 4 p.m. Singapore time on Friday, June 26. Most of those options are bullish bets, and with Bitcoin falling, those contracts are now out of the money.
Analysts cited reduced institutional demand, hawkish commentary from the Federal Reserve and thin liquidity as contributing factors. "This is a book that has been positioned for higher prices over the medium term, now being marked against a spot that has slipped," said Jean-David Pequignot, chief commercial officer at Deribit, as reported by ZeroHedge. [1]
Options Expiry Dynamics and Trader Positioning
The options expiring on Deribit represent about 37% of open interest, with the puts-to-calls ratio at 0.83, according to Pequignot. That ratio indicates more bets are on Bitcoin appreciating.
However, the bulk of call open interest is now out of the money, while puts are clustered around $60,000 to $65,000 and $70,000 to $75,000, and mostly in the money. "The consensus long-call positioning has drifted offside," Pequignot said.
Adam Haeems, head of asset management at Tesseract Group, said expiry mechanics clear positioning but do not set direction. However, he noted that thin liquidity could amplify moves. "Thin books plus a concentrated expiry mean Friday's move likely overshoots in whichever direction flow tips first, then mean-reverts once dealer hedging unwinds," Haeems said.
Separately, Griffin Ardern, co-founder of Primal Fund, said option traders' longer-dated bearish bias toward Bitcoin has intensified, with hawkish Federal Reserve commentary and elevated Treasury yields suggesting tighter liquidity conditions. "Under conditions of contracting liquidity, BTC typically does not fare so well," Ardern said. [1]
Strategy Selloff and Institutional Outflows
Strategy (MSTR) fell 8% at market open on heavy put buying, which added selling pressure on Bitcoin amid concerns that Michael Saylor may need to sell holdings. The selloff extended to Strategy's perpetual preferred stocks, further pressuring Bitcoin. According to Bloomberg data cited by ZeroHedge, U.S.-listed Bitcoin funds saw nearly $3 billion in net outflows in June as of the report date.
Institutional behavior has been mixed. While a March analysis from Bitwise found Bitcoin crossing into a macro-scale instrument with more than $1 trillion in market capitalization, current flows show a retreat. [2] At the same time, Fidelity Digital Assets described 2026 as a year of "structural retooling" for Bitcoin mining, with hash rate flattening as miners redirect power toward AI data centers. [3]
Some traders view Bitcoin as a decentralized alternative to fiat currency, but liquidity conditions remain challenging for risk assets. The broader environment of cheap money that fueled previous rallies has reversed as central banks tighten. [4]
Outlook and Key Levels Ahead
Bitcoin traded below its 200-week moving average, a technical level that can signal extended bearishness. Haeems said the more important test will come in the first full week of July, after the quarterly book clears and leverage has been reduced. Thin summer liquidity and the concentrated expiry could lead to overshoots in either direction, according to analysts.
Longer-term factors include the Federal Reserve's stance on interest rates and the potential introduction of a U.S. strategic Bitcoin reserve. The White House has indicated that legal hurdles for such a reserve have been cleared, but no formal announcement has been made. [5] Additionally, regulatory developments such as the Department of Labor's proposed rule allowing cryptocurrency in 401(k) plans could influence institutional adoption. [6]
For now, the crypto market remains vulnerable to macro headwinds and position unwinding. The current upheaval is consistent with patterns seen in previous crypto cycles where rapid price declines triggered cascading effects. [7]
References
- ZeroHedge. "Bitcoin Tumbles As Strategy Slammed, Faces Massive $10 Billion Option Expiry." June 25, 2026.
- NaturalNews.com. "Institutional Investment Transforms Bitcoin into Global Financial Instrument Analysis Shows." March 20, 2026.
- NaturalNews.com. "Bitcoin Hash Rate Flattens as Miners Face AI Squeeze Fidelity Report Says." May 31, 2026.
- Trends-Journal-2023-07-29.
- Sterling Ashworth. "White House Announces Imminent Bitcoin Reserve Plan Official Says Legal Hurdles Cleared." NaturalNews.com. May 20, 2026.
- NaturalNews.com. "US Labor Department Proposes Rule Change Allowing Cryptocurrency in 401k Retirement Plans." April 1, 2026.
- Trends-Journal-2022-11-32.
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