10x Research: Bitcoin Options Gamma Dynamics May Shift From Downside Pressure to Upside Support

10x Research said the options-market mechanics that helped push Bitcoin below the $70,000 support level may be changing and could begin to amplify gains instead of losses. According to ChainCatcher, after Bitcoin broke below $70,000, negative gamma effects in the options market intensified the decline as market makers who were short gamma were forced to sell into falling prices, turning a typical pullback into cascading liquidations. Bitcoin later bottomed at $65,705, and 10x Research said the mechanism has not disappeared but has shifted to a new key level. The firm said the largest negative gamma positioning in Bitcoin options is now concentrated near the current spot price, with an estimated notional size of about $1.8 billion, meaning market makers’ hedging could again magnify price swings if volatility rises. 10x Research added that improving sentiment indicators, the possibility that an Iran-related agreement could reduce inflation risk premia, and expectations that a new Federal Reserve chair could take a more dovish stance may be contributing to a shift in options positioning that previously reinforced declines and could now support a rebound.