Trump's tariffs intensify & options negative Gamma double pressure, BTC faces short-term volatility pressure

TokenSherpa · 2026-01-20T12:34:16+00:00

Recently, the market has been tense due to Trump's tariff remarks, leading to a sharp decline in cryptocurrencies such as Bitcoin. Options market makers are in a negative Gamma position, which has intensified market volatility, affecting retail investors. Meanwhile, the legal challenges to Trump's tariff policies in the future could also exacerbate market turbulence. Traditional market signals are also showing unfavorable trends, making it difficult for the crypto market to operate independently.

TokenSherpa

2026-01-20 12:34:16

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【Blockchain Rhythm】 The market has indeed been a bit volatile in recent days. Trump issued threats of tariffs on Europe over the “Greenland issue,” causing geopolitical tensions to spike. As a result, Bitcoin and other mainstream cryptocurrencies, along with Nasdaq futures, all tumbled together, illustrating the impact of macroeconomic bearish signals.

But that’s not the most painful part. Internal mechanisms within the crypto market are also causing chaos — options market makers are currently stuck in the $86,000 to $95,000 range, in a negative Gamma state. The term “negative” here is significant; it means market makers are forced to buy high and sell low to hedge risks. When prices rise, they are compelled to buy, and when prices fall, they have to sell off holdings. This artificially amplifies market volatility, hurting retail investors the most.

There’s also a looming uncertainty — what if the Supreme Court rules against Trump’s recent tariff policies? Analysts are watching closely. If the ruling is unfavorable, expectations around trade policies and fiscal deficits could suddenly shatter, potentially causing market turbulence to intensify.

Signals from traditional markets are also concerning. The US 10-year Treasury yield surged to a four-month high of 4.37%, the dollar is depreciating, and US stock futures are being tightly suppressed. Overall, risk assets are gasping for air. Is it realistic for the crypto market to remain unaffected? Probably not.

BTC-3,61%

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airdrop_whisperer

· 5h ago

Negative gamma squeeze is just ridiculous, retail investors getting whipped from both ends, huh --- Trump's latest antics are trying to mess with the crypto world again, even the Federal Reserve isn't this ruthless --- The 86k to 95k range is a meat grinder; anyone daring to buy the dip will die --- No matter how the court rules, it's a loss; the crypto world might as well lie down with the macroeconomy --- Market makers forced to sell off due to negative gamma, retail investors really have no way out now --- The worst is if tariffs pass, then it will be a bloodbath --- Greenland issue? Big shots playing geopolitics, the crypto world just joins in the nonsense

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MetaverseMortgage

· 5h ago

This wave of negative gamma is truly incredible. Market makers are being squeezed alive in the 86-95k meat grinder, with retail investors taking the most hits.

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QuietlyStaking

· 5h ago

Negative gamma is really incredible. Market makers are frantically buying the dip and selling the top, while retail investors just sit and wait to be harvested.

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FlashLoanLarry

· 5h ago

ngl the negative gamma squeeze is doing exactly what it's supposed to do — capital extraction disguised as "market mechanics." told you so on this one

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