When prices fall, some people sell more as they fall; when prices rise, some people buy more as they rise—and this time, it really isn’t retail traders. Market makers are hedging according to their algorithms 📉
The latest data from Greeks.Live shows that $BTC and $ETH have both now fallen into deep negative gamma territory:
1. Bitcoin’s gamma exposure is entirely in the red from around $58,000 to $72,000, with the two largest bars clustered near $68,000 and $70,000. The current price is right in this red zone.
2. Below the current price, there’s no positive gamma cushion at all. You have to fall all the way to around June’s low of $57,700 before there’s any support.
3. To turn things around, the price needs to get above $73,000. Once gamma turns positive, market makers’ hedging shifts from amplifying volatility to smoothing it out.
Ether is in the red zone on the same chart. Deribit data puts its flip levels at $2,090 to $2,104—still a long way from the current price. The logic is exactly the same.
Why is this happening? Market makers have net sold a pile of options—on one side, traders are scrambling to buy puts for a drop; on the other, some are chasing calls for a breakout. To stay neutral, market makers have to trade with the trend: sell when prices fall, buy when they rise. Adam, a researcher at Greeks.Live, put it plainly: even a small drop could snowball into a wave of liquidations in perpetual futures.
This whale’s take: The drop to around $67,000 still hasn’t found stable footing, and negative gamma is one of the forces behind it. It doesn’t determine the direction, but it amplifies every move in that direction. Just keep an eye on two levels: $73,000 above is the bullish flip zone, while $57,700 below is the last cushion. Between those two levels, the market is bound to be choppier than usual, and chasing the first move is the easiest way to get burned in either direction.
The latest data from Greeks.Live shows that $BTC and $ETH have both now fallen into deep negative gamma territory:
1. Bitcoin’s gamma exposure is entirely in the red from around $58,000 to $72,000, with the two largest bars clustered near $68,000 and $70,000. The current price is right in this red zone.
2. Below the current price, there’s no positive gamma cushion at all. You have to fall all the way to around June’s low of $57,700 before there’s any support.
3. To turn things around, the price needs to get above $73,000. Once gamma turns positive, market makers’ hedging shifts from amplifying volatility to smoothing it out.
Ether is in the red zone on the same chart. Deribit data puts its flip levels at $2,090 to $2,104—still a long way from the current price. The logic is exactly the same.
Why is this happening? Market makers have net sold a pile of options—on one side, traders are scrambling to buy puts for a drop; on the other, some are chasing calls for a breakout. To stay neutral, market makers have to trade with the trend: sell when prices fall, buy when they rise. Adam, a researcher at Greeks.Live, put it plainly: even a small drop could snowball into a wave of liquidations in perpetual futures.
This whale’s take: The drop to around $67,000 still hasn’t found stable footing, and negative gamma is one of the forces behind it. It doesn’t determine the direction, but it amplifies every move in that direction. Just keep an eye on two levels: $73,000 above is the bullish flip zone, while $57,700 below is the last cushion. Between those two levels, the market is bound to be choppier than usual, and chasing the first move is the easiest way to get burned in either direction.
