Today, March 22, 2026, crypto traders face a significant event: the expiration of approximately $1.2 billion in Bitcoin options and $680 million in Ethereum options. This event coincides with quadruple witching in traditional finance markets, creating a potentially volatile trading environment that every crypto investor should understand.
What is Quadruple Witching?
Quadruple witching occurs on the third Friday of March, June, September, and December when four major types of derivatives expire simultaneously in traditional markets: stock index futures, stock index options, single-stock options, and single-stock futures. This mass expiration forces traders to close, roll, or settle positions simultaneously, often causing spikes in trading volume and price volatility. In recent years, as Bitcoin and crypto have become increasingly correlated with traditional risk assets, quadruple witching has begun to spill over into crypto markets as well.
Bitcoin Options: What the Numbers Say
For today's Bitcoin options expiry, the max pain level sits at $71,000. Max pain refers to the price at which the maximum number of options contracts would expire worthless, resulting in the maximum loss for options buyers and maximum gain for options sellers. There is often a tendency for prices to gravitate toward the max pain level as expiry approaches, though this is not guaranteed. The current put/call ratio of 0.72 indicates a slightly bullish skew in positioning, with more call options (bets on higher prices) than put options (bets on lower prices).
Historical Pattern on Witching Days
Looking at Bitcoin's performance on previous quadruple witching days in 2025, the pattern was generally muted price action on the day itself, followed by more significant downside in the days to weeks after. This historical pattern is worth keeping in mind for traders managing positions around today's expiry. However, past performance is not necessarily indicative of future results, especially given the changing market dynamics.
The Bigger Crypto Expiry on March 27
Even more significant than today's expiry is the crypto-specific quarterly expiry scheduled for March 27, when $13.5 billion in crypto derivatives are set to expire on Deribit. Positioning data shows elevated demand for volatility strategies rather than strong directional bets, suggesting that large traders are uncertain about the near-term direction but expect significant price movement in either direction.
How to Navigate Options Expiry as a Crypto Investor
For long-term crypto investors, options expiry events are typically not a reason to make major portfolio changes. The volatility they create can actually present buying opportunities if prices dip toward strong support levels. For active traders, understanding the max pain level and the broader positioning in the options market can provide useful context for short-term trading decisions. Reducing leverage and managing position sizes carefully during these events is a prudent approach.
Conclusion
Today's combination of quadruple witching and significant Bitcoin options expiry creates a complex trading environment. While short-term volatility is to be expected, the fundamental outlook for Bitcoin remains tied to broader factors including institutional adoption, macro conditions, and the post-halving supply dynamics. Stay calm, manage your risk, and focus on the long-term picture.