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Bitcoin extended its decline on Friday, falling below the key $110,000 mark and heading for its steepest weekly drop in months, as investors braced for one of the largest-ever cryptocurrency options expiries while awaiting U.S. inflation data for policy cues.
Options Expiry Adds Pressure
The world’s biggest cryptocurrency traded 1.8% lower at $109,552.6 as of 02:20 ET (06:20 GMT), after briefly slipping to a six-week low under $109,000 earlier in the session. For the week, Bitcoin was down more than 5%, while altcoins also faced heavy losses.
Friday’s expiry of around $22 billion in crypto options contracts — including more than $17 billion in Bitcoin options, according to Deribit — has intensified selling pressure. Analysts noted that the majority of positions were skewed bullish, raising the risk of amplified volatility if support levels falter. This comes on the heels of a $1.5 billion liquidation wave earlier in the week, underscoring the persistent fragility of crypto derivatives markets.
Macro Headwinds: Fed Cuts in Question
The broader backdrop also weighed on sentiment. U.S. economic data released Thursday showed stronger-than-expected growth, with second-quarter GDP revised upward to 3.8%. Combined with a drop in jobless claims, the data cast doubt on the likelihood of aggressive Federal Reserve easing this year.
Investors are now closely watching the release of the Fed’s preferred inflation gauge — the core Personal Consumption Expenditures (PCE) price index — later on Friday. Any upside surprise could further dent expectations for rate cuts, tightening liquidity conditions for risk assets such as cryptocurrencies.
TeraWulf Seeks $3B for Expansion
In corporate developments, crypto miner TeraWulf (NASDAQ:WULF) announced plans to raise about $3 billion for data center expansion. The deal, reportedly arranged by Morgan Stanley and backed by Google, could be structured as either high-yield bonds or leveraged loans, according to CFO Patrick Fleury.
Altcoins Under Pressure
Ethereum, the second-largest crypto, slipped 1.9% to $3,922.83, hovering near a seven-week low and set for a 12% weekly drop. XRP fell 3.4% to $2.75, while Solana, Cardano, and Polygon lost between 2% and 4%. Meme coins also tracked the slide, with Dogecoin down 3% and $TRUMP retreating 1.3%.
