Bitcoin Skids, $14 Bil In Options Due; Cathie Wood Raises Cash

Core Viewpoint - Bitcoin's price has retreated to near its March low due to a significant options expiry and ongoing geopolitical tensions in the Middle East, while Cathie Wood's ARK Invest has shifted towards cash by reducing stock purchases [1][2]. Bitcoin Market Dynamics - Bitcoin's price fell to approximately $66,600, nearing its March 2 low of around $66,400, with trading range since early February between $63,000 and $76,000 [2]. - A total of $14 billion in bitcoin options are set to expire, marking the largest options expiry of the year, which has contributed to the price movement [2]. - Market dynamics leading up to options expiries create a "gravitational pull," causing prices to stabilize as market makers hedge their positions [3]. Options Expiry Impact - The "max pain" level, where the most options expire worthless, is estimated to be around $75,000, influencing market behavior prior to expiry [3]. - Post-expiry, volatility may increase as hedging pressures are lifted, with potential for significant price movements depending on the calls-to-puts ratio [4][5]. Liquidation Data - Approximately $398 million in bullish bitcoin long positions were liquidated in the past 24 hours, alongside $50.72 million in short positions [6]. MARA Holdings Update - MARA Holdings announced it raised about $1.1 billion after selling 15,133 bitcoin, with plans to use proceeds for repurchasing $1 billion in senior notes and general corporate purposes [7]. - As of December 31, MARA held 53,822 bitcoin, including 15,315 bitcoin loaned or pledged as collateral [8]. ARK Invest Activity - Cathie Wood's ARK Invest has reduced stock holdings, making minimal purchases, including 145,912 shares of Tempus AI worth $6.74 million [9]. - ARK sold 495,000 shares of its ARK 21Shares Bitcoin ETF, valued at $11.25 million, which has seen a 24% decline since the beginning of the year [10].