# Gamma Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Gamma", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

The Black Swan Revealed: The True Cause of This Bitcoin Crash

In a detailed analysis, Bitwise CIO Jeff Park explains the true cause behind the recent Bitcoin crash, attributing it to a complex interplay of traditional finance mechanisms rather than crypto-native factors. The initial trigger was a broad-based de-leveraging event within multi-strategy hedge funds, prompted by an extreme down day in software stocks and correlated risk assets—a statistically rare "black swan" event. This forced, indiscriminate selling included Bitcoin exposure, much of which was held in delta-neutral hedged positions like basis trades. The violent unwind then interacted with negative gamma dynamics in the options market. Market makers, who were structurally short gamma due to prior low volatility and client demand for puts, were forced to aggressively sell spot Bitcoin (including the IBIT ETF) as price fell, accelerating the downward move. This created a scenario where dealers effectively shorted into the sell-off, generating new ETF inventory and paradoxically preventing the expected massive outflows. Instead, the ETF complex saw net inflows. The analysis concludes that the crash was not driven by directional bearishness but by hedging and de-risking needs within traditional finance. This integration means that future rallies could be even more violent due to the same structural mechanics, highlighting Bitcoin's maturation within global capital markets.

marsbit02/08 00:36

The Black Swan Revealed: The True Cause of This Bitcoin Crash

marsbit02/08 00:36

The Black Swan Was This: The Real Reason Behind This Bitcoin Crash

Bitcoin experienced a sharp sell-off on February 5th, with prices briefly crashing to $60,000 and over $2.6 billion in liquidations. The primary catalyst was likely a broad-based de-leveraging event within multi-strategy hedge funds, triggered by extreme underperformance in software stocks and correlated risk assets. This forced liquidation included delta-neutral positions like basis trades (selling spot Bitcoin while buying futures), exacerbating the downturn. Despite the severe price drop, Bitcoin ETFs, including IBIT, saw net inflows of over $300 million, contradicting expectations of significant outflows. The sell-off was amplified by negative gamma dynamics in the options market, where dealers were short puts and forced to aggressively hedge by selling underlying assets as volatility spiked. The event highlighted Bitcoin's integration into traditional finance, with the initial selling pressure originating from non-crypto systemic de-risking rather than directional bearishness. The rapid rebound on February 6th suggested the sell-off was primarily technical and hedging-driven, not fundamental. The resilience of ETF inflows indicates underlying institutional demand, potentially setting the stage for a sharp upward move once market conditions stabilize.

Odaily星球日报02/08 00:33

The Black Swan Was This: The Real Reason Behind This Bitcoin Crash

Odaily星球日报02/08 00:33

Stress Builds Below Resistance

Bitcoin is consolidating below the Short-Term Holder Cost Basis at $96.5k, testing key support levels between $80.7k and $83.4k. A break below could trigger a deeper correction, as nearly 20% of short-term supply is held at a loss, increasing downside risk. ETF outflows have stabilized, and spot demand shows tentative recovery, but derivatives remain neutral with cautious options positioning. Sustained positive liquidity and ETF inflows are needed for a rally, while failure to hold support risks a shift toward a bearish regime.

insights.glassnode01/28 16:37

Stress Builds Below Resistance

insights.glassnode01/28 16:37

Bitcoin sheds $716B since ATH – Here’s what’s weighing on BTC

Bitcoin's market cap has declined by $716 billion from its all-time high of $2.486 trillion, now standing at $1.77 trillion. The 28.8% drawdown is largely attributed to weakening capital inflows, with realized capitalization stalling for the first time in 2.5 years. Despite over $700 billion exiting the market, spot buyer activity has outweighed selling pressure, suggesting continued accumulation by retail investors. Additionally, Bitcoin’s price has been range-bound between $85,000 and $90,000 due to options-driven gamma effects, creating mechanical support and resistance. With $23 billion in options expiring on December 26th, a return to sentiment-driven price discovery may follow, potentially allowing a rebound if bullish trends persist.

ambcrypto12/22 11:02

Bitcoin sheds $716B since ATH – Here’s what’s weighing on BTC

ambcrypto12/22 11:02

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