Entering Deep Negative Gamma Territory: Bitcoin and Ethereum Market Maker Hedging May Amplify Volatility

Odaily reports that Adam, a macro researcher at Greeks.Live, stated 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, and there is a lack of positive gamma buffer below the current price; to maintain 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.