Bitcoin's Gamma Squeeze: A Prelude to Violent Price Action?

A rare gamma squeeze in Bitcoin (BTC) markets suggests price volatility could intensify as institutional demand clashes with dormant supply. Bitcoin (BTC) reached $97,860, its highest level since November 2025, driven by ETF inflows exceeding $1.5 billion in two days.

On-chain data from CryptoQuant shows increased 'Whale Orders' and a positive 90-day Spot Taker CVD, indicating institutional-driven buying. Realized profit for long-term holders dropped to $183.8 million per day, a 75% decline from late 2025, reducing selling pressure.

Value Days Destroyed (VDD) stands at 0.53, historically low, suggesting older BTC remains inactive. Derivatives activity triggered a record $579,258 BTC options open interest reset, with dealer gamma short in the $95,000–$104,000 zone amplifying upside.

US CPI inflation data (2.7% YoY) reduced real yields to 1.83%, easing financial conditions for risk-on assets like BTC.

The CLARITY Act, pending US legislation, aims to clarify regulatory boundaries for crypto, potentially compressing BTC's risk premium.

Look, the interplay between ETF-driven demand and compressed selling pressure is creating a unique environment where Bitcoin's price could see sharp, directional moves.

If you're tracking this market, watch the $95,000–$104,000 gamma zone—it’s the fulcrum point for the next phase.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.