Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Market Makers Responsible for Bitcoin Drop to $60,000, According to 10x Research, 2026/02/09 15:21:06
The drop in Bitcoin to $60,000 at the beginning of February was driven not primarily by profit-taking from holders of spot Bitcoin ETFs, but rather by market makers—participants in the market tasked with ensuring its stability—stated Markus Thielen, founder of the analytical firm 10x Research.
Market makers, also known as market dealers, are professional trading participants who consistently place buy and sell orders in the exchange order book. Their role is to maintain liquidity so that transactions can occur without significant delays or sharp price fluctuations. They profit from the spread—the small difference between the buying and selling price of an asset—without betting on market increases or decreases, Thielen reminded.
During the Bitcoin decline, market makers found themselves in a “short gamma” position—a scenario where they held numerous uncovered options but lacked sufficient hedging trades to protect against price fluctuations, the analyst explains. As Bitcoin fell below $75,000, market makers began to sell the asset en masse on both spot and futures markets to rebalance their positions and maintain neutrality to price changes. This created significant additional pressure on the market, Thielen asserts.
Related Posts
“The presence of approximately $1.5 billion in negative ‘gamma position’ within the $75,000–$60,000 range played a crucial role in accelerating Bitcoin’s decline. This also accounts for the sharp market rebound after the last major cluster of ‘gamma positions’ around $60,000 was activated and absorbed,” the expert suggested.
Thielen elaborated on his point: “negative gamma” compels market makers to hedge positions in the same direction as the price movement. The decline of Bitcoin into the $60,000–$75,000 range forced dealers to sell the asset, which further pushed the price downward. This initiated a self-reinforcing cycle: the lower Bitcoin fell, the more sales were generated by the hedges of market makers.
Previously, Bitwise advisor Jeff Park suggested that hedge funds were responsible for the downturn in the crypto market, specifically due to their risk management policies.
