Tracking Volatility Regimes: Gamma Exposure Heatmap
Glassnode introduces a new Gamma Exposure (GEX) Strike Heatmap, a proprietary tool designed to track how dealer hedging flows influence crypto market volatility over time. Unlike static snapshots, this visualization shows how gamma exposure shifts across strike prices as markets move, helping traders identify volatility regimes are likely to change.
GEX measures whether dealers are net long (positive GEX) or short (negative GEX) gamma. Positive GEX acts as a volatility dampener, leading to range-bound conditions, while negative GEX accelerates price moves, often causing liquidity cascades.
The heatmap reveals key features like persistent positive gamma “walls” that stabilize price and expanding negative zones that signal potential breakouts. An accompanying chart tracks total GEX over time, indicating whether the market is in a high or low volatility regime based on dealer positioning.
Available for BTC, ETH, XRP, and SOL in Glassnode Studio, this tool offers systematic and discretionary traders deeper insight into how options flows affect short-term price action.
insights.glassnode02/24 13:15
