26-3-2025 – As bitcoin (BTC) powers through its recovery rally, all eyes are on the $90,000 mark—a pivotal threshold where the cryptocurrency’s journey could take a dramatic turn. This anticipation stems largely from the intricate dance of options market makers, whose current positioning hints at potential fireworks.
Market makers—often dubbed dealers or simply MMs—are the unsung architects of liquidity, standing ready to take the opposite side of investors’ trades. Their mission is to keep the market humming, balancing their books by offsetting risks in the spot and futures arenas. They thrive on the bid-ask spread, pocketing the difference between their buying and selling prices. Yet, according to Deribit bitcoin options data crunched by Amberdata, these players are currently “short gamma” at the $90,000 strike. In plain terms, as bitcoin edges toward this level, market makers will find themselves selling when prices dip and buying when they climb—all in a bid to stay neutral. This hedging hustle could jolt the market into sharper swings.
Griffin Ardern, the mastermind behind BloFin Academy and head of BloFin Research and Options, shared his insights with CoinDesk. “Even after the quarterly settlement, negative gamma will keep its grip on the market,” he explained. “The way market makers adjust their positions could amplify price turbulence, though the odds seem to tilt toward an upward surge for now.” Gamma, for the uninitiated, tracks how swiftly an option’s sensitivity—known as delta—shifts with the underlying asset’s price. Being short gamma means holding a short options position, a stance that can spell trouble amid wild volatility, forcing dealers to trade in lockstep with the market’s momentum.
Rewind to late last year, and the picture was starkly different. Market makers were “long gamma” at $90,000 and £100,000, a setup that kept bitcoin boxed in between those levels. Fast forward to today, and the gamma landscape tells a fresh story. Charts mapping strike prices across expiration dates reveal that $90,000 will hold the crown for the most negative delta once Friday’s quarterly settlement dust settles. In short, the hedging antics of dealers could turn this price point into a volatility hotspot.
Ardern also drew a striking parallel with the gold-backed PAXG token. “Strip away the options nearing settlement, and PAXG’s gamma exposure mirrors bitcoin’s,” he noted. “Prices find a floor after steep drops but hit a ceiling when they soar, setting the stage for broad fluctuations.” As bitcoin barrels toward $90,000, the market braces for a ride shaped by the deft moves of its behind-the-scenes players.
