Bitcoin's Negative Gamma Exposure Expected to Ease with Upcoming Options Expiry

Bitcoin's total gamma exposure has remained negative since mid-January, currently reaching -3.2 billion dollars at the 82,000-dollar strike price, according to ChainCatcher. In a negative gamma environment, market makers are compelled to trade in the direction of price movements, accelerating buying during upswings and selling during downswings, which intensifies price volatility. With options set to expire on May 29 and June 26, the suppressive effect of negative gamma is expected to gradually dissipate, potentially alleviating Bitcoin's downward bias. Currently, the demand for call options significantly exceeds that for put options, with institutions anticipating a shift in market sentiment from bearish to bullish.