Bloomberg: Bitcoin's sharp fall enters a dangerous zone, with options factors exacerbating market fluctuations.

BlockBeats news, on November 22, according to Bloomberg, Bitcoin has sharply fallen, putting the market in a dangerous situation. The selling based on options trading has further exacerbated the fluctuation. Bitcoin has fallen about 25% this month so far. This decline is mainly caused by spot dumping, including fund outflows from trading platforms' ETFs, the sale of wallet assets that have not been used for a long time, and a decrease in demand from momentum investors, among other factors. On the other hand, options trading positions have also amplified price fluctuations. When Bitcoin falls below certain price levels, traders need to adjust hedging to maintain neutral positions. This process, known as “Gamma exposure,” further amplifies price fluctuations. One key level is $85,000, which was breached on the 21st. Demand for put options around this strike price is concentrated, forcing market makers to hedge against large exposures. In this case, traders are typically in a “short Gamma” state, and to maintain balance, they will further sell Bitcoin, accelerating the decline.