Bitcoin Price Surges Past $110,000: Options Market Plays a Key Role

Bitcoin is breaking new ground today, surpassing the $110,000 mark. This surge is fueled by optimistic sentiment about US-China trade relations. Notably, options investors are actively rebalancing their positions ahead of Friday’s expiration of $13 billion worth of Bitcoin options – a potential catalyst for increased market volatility. Market makers are bracing themselves for this event as they hold substantial negative gamma positions, especially around the $100,000 and $111,000 levels. To counter this imbalance, they’re aggressively adjusting their delta positions by buying when prices climb and selling them as they dip.