Bitcoin Options Market Reverses Negative Gamma Mechanism; $1.8B Positioning Now Favors Upside

BTC4.91%
According to 10x Research, the options market mechanism that initially pushed Bitcoin below $70,000 is reversing and may now support a rally. The negative Gamma effect previously amplified the selloff, forcing short Gamma market makers to liquidate positions during the decline, which cascaded into broader liquidations that drove BTC down to $65,705. Currently, the largest negative Gamma positioning in Bitcoin options markets sits near the spot price at approximately $1.8 billion in notional value. If price volatility emerges, hedging flows could accelerate upside moves instead of downside pressure, as improving market sentiment and reduced inflation risk premiums create conditions for the former bearish structure to become bullish.
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