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Two weeks ago, Bitcoin's options market did something brutal. As BTC broke below $70,000, dealers who were short gamma at that level were forced to sell into the decline, turning a drawdown into a cascade of liquidations all the way down to $65,705.
That mechanism hasn't disappeared. It's moved.
This week, the single largest negative-gamma strike on the entire board, $1.83bn, sits exactly where spot is trading right now. And for the first time in months, implied volatility across BTC, ETH, and IBIT has fallen below realized volatility. Options are pricing in less movement than the market is delivering.
Layer on a sentiment indicator, an Iran deal pulling the inflation premium out of the curve, and a new Fed Chair expected to deliver a dovish stance, and the same mechanics that drove Bitcoin's selloff two weeks ago may now be set up to work in reverse.
Subscribers get the full breakdown below: the exact gamma levels, the expiry walls that matter into June 26, and the two trades we're putting on this week to play it, including our 12 page chart book with 30 Bitcoin and Ethereum options charts.
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