10X Research: Bitcoin falls back into liquidity trap zone, market may be about to reverse.

Markus Thielen, CEO of 10X Research, stated at the Consensus Hong Kong conference: “Following the November 2024 election, Bitcoin surged from $70,000 to $90,000 in just 10 to 12 days. Trading activity was extremely sparse during this period, creating a huge gap, a liquidity vacuum. So when Bitcoin fell back to $87,000, it fell into this liquidity trap. What followed was a surge of negative option gamma at $75,000. This meant market makers had to hedge, constantly selling futures. As the final wave of negative gamma shocks was absorbed at $60,000, the market situation may reverse.”