[10x Research: Bitcoin Options Negative Gamma Mechanism Reverses, Market May See a Rebound]
10x Research stated that the negative gamma mechanism in Bitcoin options, which drove Bitcoin below $70,000, is reversing and may now support an upward move. After BTC fell below $70,000, market makers were forced to sell, causing Bitcoin to drop to a low of $65,705. Currently, the largest negative gamma position in the options market is located near the spot price, with a scale of approximately $1.8 billion. Factors such as improved market sentiment, reduced inflation risk premium due to agreements related to Iran, and market expectations that Federal Reserve Chair Kevin Warsh will adopt a more dovish stance may drive the options structure to become a force supporting a rebound.
