Analysis: BTC and ETH are in a deep negative gamma region, market makers hedge or exacerbate volatility

According to CoinDesk, data from the options platform Greeks.Live shows that both Bitcoin and Ethereum are currently in the "negative gamma" zone, which means that the routine hedging operations of market makers may amplify price fluctuations. To maintain directional neutrality, market makers typically buy and sell tokens or futures to hedge risks. However, in a negative gamma state, to maintain hedging, they must sell when prices fall and buy when prices rise, thus conforming to and exacerbating market trends.

Greeks.Live macro researcher Adam stated that both Bitcoin and Ethereum have entered a deep negative gamma zone. Charts indicate that Bitcoin is in negative gamma within the range of approximately $58,000 to $72,000, and there is a lack of positive gamma buffer below the current price. This hedging behavior could trigger a chain reaction, causing small declines to evolve into large-scale liquidations of perpetual contracts. Adam pointed out that the market may face a fragile order book and momentum-driven price trends before BTC and ETH return to the "gamma flip" level of around $73,000.