Bitcoin price is exploding, and a rare “gamma squeeze” suggests the price action is about to get violent
Bitcoin's price surge, driven by massive ETF inflows and reduced selling, is amplified by a rare options market setup suggesting volatile upward movement.Summary
Bitcoin recently climbed above $97,000, supported by strong underlying mechanics, primarily massive inflows into US spot Bitcoin ETFs exceeding daily issuance. On-chain data from CryptoQuant confirms this strength originated from genuine spot buying by large entities ("Whales") rather than leveraged speculation, as indicated by positive Spot Taker CVD metrics.
This upward momentum is sustained because profit-taking has sharply decreased, with realized profit falling significantly from Q4 highs, and the Value Days Destroyed (VDD) metric shows long-term holders are HODLing. This lack of selling pressure allows incoming demand to lift prices efficiently.
The rally is being accelerated by derivatives positioning, including significant short liquidations and a rare options market condition where dealer gamma was short in the $95,000–$104,000 zone, suggesting market makers' hedging flows will amplify upside once price rises—a setup often referred to as a "gamma squeeze." While macro tailwinds from softer CPI data help, the sustainability of the rally hinges on reclaiming the Short-Term Holder cost basis around $99,100 to overcome overhead supply clustered between $92,100 and $117,400.
(Source：CryptoSlate)