In a recent statement via X (formerly Twitter), Alex Thorn, head of firm wide research at digital asset firm Galaxy, highlighted the potential for another Bitcoin gamma squeeze similar to the one witnessed last week. BTC gained 15% last week. He remarked, “The Bitcoin gamma squeeze from last week could happen again. If BTCUSD moves higher to $35,750-36k, options dealers will need to buy $20m in spot BTC for every 1% upside move, which could cause explosiveness if we begin to move up towards those levels.”
Elaborating on the mechanics, Thorn explained the behavior of dealers in relation to gamma and delta. “When dealers are short gamma and price moves up, or when they are long gamma and price moves down, they need to buy spot to stay delta neutral. Last week’s expiries will dampen potential explosiveness, but it’s still in play.” This essentially means that the actions of options dealers, driven by the need to maintain a neutral position, can amplify price movements.
Will Bi

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