Coinbase Institutional has unveiled a new market analysis introducing the “Gamma Exposure (GEX)” metric to evaluate Bitcoin (BTC) liquidity and price volatility. The report highlights a critical negative gamma concentration between the $60,000 and $70,000 price levels. This specific market structure suggests that any downward trend toward the $60,000 mark could experience rapid acceleration due to dealer hedging activities. Conversely, the $85,000 to $90,000 region exhibits meaningful positive gamma, indicating that upside movements may enter a slow “grind and pin” state as they approach the $90,000 threshold.
What is the gamma flip? Volatility versus stability
The GEX metric serves as a vital indicator of how options market makers must adjust their positions as the underlying asset price changes. In a negative gamma environment, such as the current $60,000–$70,000 zone, dealers typically sell into price drops and buy during rallies, which effectively amplifies existing price swings and increases overall market turbulence. This “short gamma” positioning can lead to cascading sell-offs if key support levels are breached.
— Coinbase Institutional 🛡️ (@CoinbaseInsto) February 24, 2026
In contrast, the positive gamma between $85,000 and $90,000 helps stabilize the market. Here, dealers buy when prices dip and sell during rallies, which keeps volatility low and often holds the price in a tight range. David Duong, head of institutional research at Coinbase, said that $82,000 is the first big barrier for a bullish move, but the strong positive gamma above that could slow down any further surge.
Institutional demand and price floors
This shift in market mechanics comes as Bitcoin faces persistent pressure, having recently slipped below its “True Market Mean” of approximately $79,000. The $60,000 level is now widely regarded as the most critical shelf that must hold to prevent a deeper decline toward the realized price boundary of $54,900.
Meanwhile, Metaplanet reported a massive non-operating loss of ¥102.2 billion (approx. $680 million) for the year ending December 31, 2025, primarily due to a Bitcoin valuation loss in Q4 2025. This loss stems from the accounting requirement to value Bitcoin at market rates following a significant price drop. Despite this, the company confirmed its fundamental Bitcoin treasury strategy remains on course, continuing to accumulate Bitcoin as a hedge against the yen and inflation, unaffected by market fluctuations.
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