Entering Deep Negative Gamma Territory: Market Makers' Hedging in Bitcoin and Ethereum May Amplify Volatility

Odaily reports that Adam, a macro researcher at Greeks.Live, stated that both Bitcoin and Ethereum have entered deep negative gamma territory. Bitcoin is exhibiting negative gamma in the approximately $58,000 to $72,000 range, with no positive gamma buffer below the current price. To maintain their hedges, market makers need to sell when prices fall and buy when prices rise. Such operations may amplify price volatility and cause small declines to escalate into large-scale liquidations in perpetual contracts.