TechFlow News, June 15: 10x Research stated in a report that the options market mechanism responsible for pushing Bitcoin below its $70,000 support level is undergoing changes—and may even begin fueling upward momentum. After BTC fell below $70,000, the negative gamma effect in the options market amplified the decline. Market makers short gamma were forced to sell during the downturn, transforming what would have been a normal correction into a cascade of liquidations; Bitcoin plunged as low as $65,705. While this mechanism has not disappeared, it has shifted to a new critical price level.
Currently, the largest concentration of negative gamma positions in the Bitcoin options market resides near the prevailing spot price—representing approximately $1.8 billion in notional value. Any price volatility could trigger hedging activity by market makers, thereby amplifying price moves once again. Factors such as improving market sentiment indicators, potential agreements involving Iran that could reduce inflation risk premiums, and market expectations that the next Federal Reserve Chair will adopt a more dovish stance are collectively shifting the options structure—which previously contributed to Bitcoin’s decline—into a catalyst for recovery.
