Matrixport: Bitcoin Gamma Liquidation, Liquidity Still Lacking

Deep Tide TechFlow News, February 27 — Matrixport reports that “This week, Bitcoin has shown little significant volatility, which actually makes this a more interesting point to watch. Beneath the calm surface, market structure is quietly changing. Approximately $2.5 billion in gamma exposure is about to expire, and since the peak, $26.7 billion has been withdrawn from the market. Overall positions are also approaching a reset. The main drivers of future movement may gradually shift from options mechanisms to liquidity itself.

In this report, we focus on three key points: whether this recent rebound is misleading and enough to signal a trend reversal; where passive hedging pressures will mainly concentrate after options expire; and what conditions the market needs to meet to support a more sustainable stabilization. Perhaps the most noteworthy phase of this cycle has just begun.

Currently, Bitcoin’s price is roughly unchanged from a week ago, but the trend is unstable. The previous rapid decline and the equally swift rebound are largely related to options position structures. Market makers have maintained short gamma positions. As prices fell, they were forced to sell futures to hedge their exposure, which mechanistically amplified the decline and accelerated the price toward $63,000.”