10X Research: The current market is primed for a rebound, with this recent drop attributed to market makers selling futures in a liquidity trap

On February 12, 10X Research CEO Markus Thielen told attendees at the Consensus Hong Kong conference: “After the November 2024 election, Bitcoin surged rapidly from $70,000 to $90,000 in just 10 to 12 days. But trading was extremely thin during that rally—creating a big liquidity gap, a void in market depth. When Bitcoin dropped to $87,000, it fell into that liquidity trap. Here’s what followed: At the $75,000 level, there was heavy negative gamma in the options market. That forced market makers to hedge, and their only option was to keep selling futures. Once the last of the negative gamma impact at $60,000 was absorbed, the tide turned: ‘Alright, the last market maker’s hedging is done—now we can flip direction.’”