According to observations from the Gate Research Institute, the current implied volatility for Bitcoin (BTC) and Ethereum (ETH) are 55% and 74%, respectively, reflecting the options market's high expectations for short-term price fluctuations. Recent negative Delta skew for BTC and ETH indicates increased demand for short-term puts. The Gamma distribution is concentrated around March 13, which could lead to amplified volatility. In terms of large options trades, significant buying activity has been observed for both BTC and ETH.

Odaily Planet Daily reports that OneKey founder Yishi posted on the X platform: "Pay attention to the short OI (short open interest) congestion around 75k. Once a crowded short (concentrated short positions) + market makers' passive delta buying create a positive feedback loop, March is highly likely to see a classic gamma squeeze."

Bitcoin prices remain stable this week, but market structure is changing as approximately $2.5 billion in gamma exposure is about to be liquidated. The influence of the options mechanism may weaken, with liquidity becoming the dominant factor. Analysis indicates that recent rebounds could be misleading, and attention should be paid to subsequent hedging pressures and market stabilization conditions. Overall positions are close to reset, signaling a new phase in the cycle.

10X Research CEO Markus Thielen stated that after the 2024 US election, Bitcoin could rapidly rise to $90,000, but then fall back to $87,000 due to a liquidity vacuum, facing negative options gamma at $75,000, which leads market makers to sell futures. The market situation could reverse at $60,000.

On January 20th, due to Trump's tariff threats against European countries, geopolitical tensions intensified, leading to a synchronized decline in Bitcoin and major cryptocurrencies along with Nasdaq futures. The market was also affected by the negative Gamma state in the Bitcoin options market, which could exacerbate price volatility. Meanwhile, Trump's tariff policy faces the risk of a Supreme Court ruling, potentially triggering greater market fluctuations. The US 10-year Treasury yield rose to a four-month high, the US dollar weakened, and US stock futures came under pressure.

The BTC capital structure has undergone significant changes, with Long Gamma weakening and shifting to Short Gamma, leading to a decrease in support strength and increased volatility. The current $87,000 to $92,000 range remains a strong support, but if broken, it could cause BTC to fall back to the $72,000 to $74,000 range.

BlockBeats News, January 8 — Glassnode published its weekly market review report stating that as Bitcoin enters the new year, a significant portion of residual positions in the spot, futures, and options markets have been cleared. The deleveraging event by the end of 2025 and the expiry cycle at year-end have effectively reset the market's structural constraints, leaving a clearer and more transparent signal environment. Currently, early signs of market reactivation have emerged. ETF capital flows are beginning to stabilize, futures market participation is rebuilding, and the options market has also shifted noticeably to bullish, with skewness trending toward normality, volatility hitting a bottom, and traders' gamma values turning short near key high strike prices. These dynamics collectively indicate that the market is shifting from a defensive, distribution-driven behavior pattern to selectively taking on risk and rebuilding engagement. Although structural accumulation remains moderate, positions are over

As the large-scale Bitcoin options expiration approaches, the derivatives market structure is changing. Market participants believe that Bitcoin's price is expected to break out of the sideways trading range of $85,000 to $90,000 since December and make a push towards higher levels. Previously, amid a strong US stock market and gold reaching record highs, Bitcoin was confined to a range-bound oscillation for a long time, disappointing many investors. The key reason behind this was the hedging mechanism in the options market. Near the current price, a large number of options are expiring. Options give traders the right to buy or sell Bitcoin at a specific price, while option sellers typically hedge dynamically through spot and futures markets. Their behavior is influenced by "Delta" and "Gamma." When the price approaches the high Gamma zone, traders need to buy and sell frequently to hedge risks, which suppresses price volatility.

AI demonstration tool developer Gamma completes $68 million Series B funding, valuing the company at $2.1 billion. The company uses AI technology to convert text into presentations and has 70 million users. The new funds will be used to expand enterprise services and recruit AI engineers, challenging the traditional presentation tool market.

Golden Finance reports that Nexus has announced the launch of a new task series Gamma Genesis Glyphs for its NEX Testnet III points activity, including tasks to enhance daily contribution calculations, share Gamma Glyphs tasks, and a new task "Were Doing Numbers." Users can claim a limited-time Gamma Genesis Glyph, but Alpha and Beta Genesis Glyphs can no longer be minted.