Bitcoin Options Gamma Unwinds, Liquidity Looms as Biggest Hurdle

Bitcoin's recent rally was largely driven by options mechanics, but with gamma exposure largely cleared, the next big directional move is unlikely to come from options flows. Positioning is now materially lighter after the unwind of hedges and crash protection, and liquidity continues to drain. The report sees this as a pivotal moment, as gamma-driven volatility fades, but without a liquidity turnaround, Bitcoin's path remains challenging.