Bitcoin and Ethereum Enter Deep Negative Gamma Zone, Market Maker Hedging May Amplify Volatility
OdailyOdaily News: Adam, a macro researcher at Greeks.Live, said that both Bitcoin and Ethereum have entered a deep negative gamma zone. Bitcoin is in negative gamma within the roughly $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 turn a small decline into large-scale liquidations in perpetual contracts.
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