BTC Price Eyes $90K, Sparking Speculation of a Market Surge

Bitcoin Approaches $90K as Options Market Makers Brace for Turbulence

Bitcoin’s (BTC) price surge has brought it closer to the $90,000 mark, a level that could trigger significant volatility due to market makers’ positioning in the options market.

How Market Makers Influence BTC’s Price Movements

Market makers (MMs) play a crucial role in maintaining liquidity, hedging positions in spot and futures markets to stay neutral. However, current Deribit options data tracked by Amberdata suggests that MMs are “short gamma” at $90K—a condition that can drive amplified price swings.

In simple terms, when MMs are short gamma, they must buy BTC when prices rise and sell when they fall, which intensifies market moves rather than dampening them.

“Negative gamma will continue to impact BTC after settlement, making market maker hedging a key driver of volatility,” noted Griffin Ardern, head of BloFin Research and Options. “However, at this stage, the probability of an upward breakout appears stronger.”

What Happens After Friday’s Quarterly Expiration?

With a major quarterly options settlement set for Friday, traders expect heightened volatility around the $90K level. Historically, BTC price action has consolidated when market makers are long gamma (which helps reduce swings), but with short gamma at play now, price fluctuations may become more dramatic.

Following the options expiration, BTC’s dealer gamma profile may resemble that of PAXG, the gold-backed token, where prices find support after declines but face resistance on sharp moves upward, Ardern added.

Key Takeaways for Traders

• $90K is the level to watch—a breakout could extend Bitcoin’s rally, while rejection could trigger a pullback.
• Options hedging will likely drive increased volatility, making this a critical moment for market participants.
• BTC may enter a wide-ranging trading pattern post-settlement, similar to gold-backed assets like PAXG.

As Bitcoin inches toward this key psychological and technical level, traders are preparing for a potential shake-up in the market.