Bitcoin's $70,000 options dynamics are flipping, setting the stage for a rebound

Huoxing Finance reported that 10x Research said the options-market setup that dragged Bitcoin through the $70,000 support level is starting to shift—and could even begin reinforcing an upside move. After BTC slipped below $70,000, negative gamma in the options market intensified selling pressure. Market makers running short-gamma exposure were forced to sell into the decline, turning what could have been an orderly pullback into a liquidation-driven slide that sent Bitcoin as low as $65,705. According to the report, this dynamic has not disappeared; it has moved to a new inflection point. The largest concentration of negative-gamma exposure in Bitcoin options is now clustered near the current spot price, totaling about $1.8 billion. Any bout of volatility could again be amplified by market makers' hedging flows. 10x Research added that as sentiment indicators improve, inflation risk premia potentially ease on expectations of possible Iran-related agreements, and investors price in a more dovish stance from the next Federal Reserve chair, the same options structure that previously accelerated downside may be evolving into support for a rebound.