Crypto Bulls Watch Closely as Bitcoin Inches Toward $90K

Bitcoin Eyes $90K as Options Market Makers Brace for Price Swings

Bitcoin (BTC) is approaching the $90,000 threshold, a level that could bring heightened market turbulence as options market makers adjust their hedging strategies.

How Market Makers Influence BTC’s Volatility

Market makers (MMs) play a vital role in providing liquidity and balancing exposure in spot and derivatives markets. However, Amberdata’s Deribit options data reveals that MMs are currently “short gamma” at $90K, meaning they may need to buy aggressively as BTC rises and sell if prices fall, exacerbating price movements.

“With gamma exposure remaining negative after Friday’s expiration, price fluctuations could become even more pronounced,” explained Griffin Ardern, head of BloFin Research and Options. “For now, the market seems tilted toward further upside.”

What Happens After the Quarterly Options Expiry?

The upcoming quarterly options settlement on Friday will likely influence Bitcoin’s near-term price trajectory. Typically, when market makers are long gamma, price swings are contained. However, with short gamma exposure, their hedging behavior can fuel sharper rallies and pullbacks.

Potential Market Behavior Post-Expiration

Once the expiring contracts settle, BTC’s price movements could resemble those of PAXG, a gold-backed asset, which experiences support on dips but faces resistance during rapid surges, according to Ardern.

Key Takeaways for Traders

$90K is a pivotal level, where BTC’s next move will be shaped by derivatives-driven activity.
Market makers’ hedging strategies could amplify volatility, leading to sharp price swings.
BTC could enter a choppy trading range post-expiration, mirroring assets like PAXG, which see fluctuating but structured price action.

With Friday’s options settlement acting as a major event, traders are closely watching BTC’s reaction at $90,000, as it could dictate the market’s next big move.