CoinDesk
Bitcoin and Ether are trading inside a price range where market-maker hedging is likely to exaggerate moves rather than calm them. According to data from options platform Greeks.Live, gamma exposure, or GEX, is deeply negative across the zone where BTC is changing hands, with the token near $67,191 on Saturday and every bar on the dealer-positioning chart red from roughly $58,000 to $72,000.
The mechanism is mechanical, not directional. Market makers take the other side of options trades and hedge the resulting exposure by buying or selling coins and futures to stay market-neutral. In a short-gamma regime, that hedging means selling as prices fall and buying as prices rise, trading with the prevailing momentum rather than against it.
Why it matters
"Deep negative GEX means dealers are net short options," Adam, a macro researcher at Greeks.Live, told CoinDesk, noting the positioning is largely driven by traders bidding up downside puts or chasing breakout calls. "To stay hedged in a short-gamma regime, dealers must trade with the prevailing momentum, not against it."
The Ether chart shows the same structure, with price hovering inside the negative gamma zone. Adam warned the setup can also chain-react: even a small dip can snowball into a wave of liquidations across perpetual futures as leveraged bets are forcibly closed.
Market impact
Short gamma cuts both ways. If prices start rising from here, dealer hedging would likely accelerate the move higher as market makers buy into strength. The dynamic reverses only above about $73,000, where BTC's gamma exposure turns positive and hedging would work against the market, potentially damping volatility. Below the current price, there is no green on the chart until the area around the June low of $57,700.
"Expect fragile order books, exaggerated intraday wicks, and momentum-driven price action" until both assets reclaim their respective gamma flip levels, Adam said. GEX shifts as prices move and contracts expire, so the map can change quickly.
Frequently asked questions
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What is negative gamma exposure in Bitcoin options?
Negative gamma exposure, or short GEX, means options market makers are net short options, largely from traders buying downside puts or breakout calls. To stay hedged, dealers must trade with prevailing momentum, selling as prices fall and buying as prices rise.
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How does dealer hedging amplify volatility?
Market makers hedge their options books by buying or selling coins and futures to stay market-neutral. In a short-gamma regime, that hedging means selling into declines and buying into rallies, which exaggerates price moves instead of damping them.
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At what price does Bitcoin's gamma exposure turn positive?
According to Greeks.Live's chart, Bitcoin's gamma exposure turns positive above about $73,000. Above that level, market-maker hedging would work against the market and could reduce volatility rather than amplify it.
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Why could negative gamma trigger liquidation cascades?
Greeks.Live researcher Adam warned that even a small dip can snowball into a wave of liquidations across perpetual futures. Forced closures of leveraged positions add selling pressure on top of dealer hedging flows, deepening the move.
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Is the negative gamma picture for BTC and ETH permanent?
No. Gamma exposure changes as prices move and options contracts expire, so the positioning map can shift quickly. The current chart shows no positive gamma below spot until the area around Bitcoin's June low near $57,700.
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