Analysis: Bitcoin falling below $68,000 triggers a "negative gamma" effect, potentially accelerating the decline toward $60,000.

CoinWires news: According to CoinDesk, impacted by the geopolitical situation, Bitcoin has slipped to around $67,000. On-chain and options data show that the fragility of the current market structure may trigger a deeper pullback. A Glassnode report notes that in recent days, traders at Deribit have heavily bought put options with strike prices in the $68,000 to $55,000 range to hedge macro risks. This has caused market makers to accumulate a massive “negative gamma” exposure within that price range. When the BTC price breaks below the $68,000 key defensive line, market makers—who are put option sellers—will be forced to short Bitcoin in the spot market in order to hedge their paper losses. This spot selloff driven by passive hedging will create a self-reinforcing negative feedback loop, thereby accelerating the decline in price. Coupled with relatively weak market liquidity after the holiday and options expiration, there is a shortage of capital to absorb buy-side demand. If Bitcoin cannot regain and stabilize above $68,000 in the short term, the market makers’ wave of selling is likely to push the price further down below $60,000.