Matrixport: Bitcoin Options Gamma Unwinding, Liquidity Still Lacking

According to Odaily, Matrixport released today's chart stating that there has been almost no significant fluctuation in bitcoin this week, which precisely indicates that the current moment deserves more attention. Beneath the calm surface, the market structure is quietly changing. About $2.5 billions of gamma exposure is about to be cleared at the end of the month, and since the peak, $26.7 billions have already exited the market, with overall positions nearing a reset. The dominant factor for subsequent trends may gradually shift from options mechanisms to liquidity itself.

In this report, we will focus on three points: whether the recent rebound is misleading and sufficient to constitute a trend reversal; after options expiration, where the passive hedging pressure will mainly concentrate; and what conditions the market needs to meet to support a more sustainable stabilization. Perhaps, the most noteworthy phase of this cycle is just beginning.

Currently, the price of bitcoin is roughly flat compared to a week ago, but the trend is not stable. The previous rapid decline and the equally swift rebound that followed were largely related to the structure of options positions. Market makers had maintained short gamma positions. As the price fell, they were forced to sell futures to hedge their exposure, which mechanically amplified the decline and accelerated the price movement toward $63,000.