Data: Near $80,000 has the highest negative gamma value, and a breakthrough would intensify bullish market volatility

BlockBeats News, November 10, according to CoinDesk's report today, BTC broke through $79,000, with a weekly gain of 15%, reaching its highest level since February. Most of the gains have occurred since Donald Trump won the U.S. presidential election, with the Trump victory raising hopes for increased regulatory transparency in the crypto industry.

The annualized rolling premium of three-month Bitcoin futures on Binance and Deribit has risen along with the price, surpassing 14% for the first time since June. The CME futures basis rose more than 10% on Friday. The increase in premium reflects a bullish sentiment. Since before the U.S. election, traders have been buying bullish call options at $80,000, expecting a breakout by the end of the year. Amberdata data shows that near $80,000 has the highest negative gamma value, so once the price reaches that level, volatility may increase sharply. Holding a negative gamma means that the net short exposure is maintained at a certain level, and negative gamma concentrated around $80,000 means that market makers or entities responsible for providing liquidity to the order book can buy into a potential breakout above $80,000, thereby exacerbating the market's bullish volatility.

BlockBeats Note: In trading, Negative Gamma refers to when an investor's option position causes their delta sensitivity to the underlying asset price changes to decrease. This means that when the underlying asset price fluctuates, a negative gamma position will increase the investor's risk, especially in times of intense market volatility.