Analysis: The options mechanism supported by Bitcoin at $70,000 is reversing, and the market may welcome a rebound

10x Research stated that the mechanisms in the options market driving Bitcoin below the $70,000 support level are changing and may even shift to promote an increase. After BTC fell below $70,000, the negative gamma effect in the options market amplified the decline. At that time, market makers who were short gamma were forced to sell during the downturn, causing the market to evolve from a normal pullback to a series of liquidations, with Bitcoin dropping to a low of $65,705. This mechanism has not disappeared but has shifted to a new critical position.

At this stage, the largest negative gamma position in the Bitcoin options market is near the current spot price, corresponding to a scale of about $1.8 billion. If price fluctuations occur, the hedging actions of market makers may again amplify the market movements. Driven by factors such as improved market sentiment indicators, potential agreements related to Iran that may reduce inflation risk premiums, and market expectations that the new Federal Reserve chair will adopt a more dovish stance, the options structure that previously led to Bitcoin's decline may be transforming into a force that promotes a rebound.