BTC and ETH are in deep negative gamma territory; market makers' hedging may exacerbate volatility.

Greeks.Live data shows that both BTC and ETH are currently in negative gamma territory. To maintain directional neutrality, market makers need to sell when prices fall and buy when prices rise; this hedging action both follows and exacerbates market trends. Adam, a macro researcher at Greeks.Live, stated that both BTC and ETH have entered deep negative gamma territory. BTC exhibits negative gamma in the $58,000 to $72,000 range, and currently lacks a positive gamma buffer below the price. This hedging behavior could cause a minor decline to escalate into a large-scale liquidation of perpetual contracts. (Source: CoinDesk)