Market makers accelerating Bitcoin crash
Bitcoin’s price plunged from about $77,000 to nearly $60,000 between Feb. 4 and Feb. 7, 2026, marking a rapid fall over three days. This sharp drop was accelerated by market makers and was also exacerbated by macro pressures and ETF selling. Key numbers cited include roughly $77,000, nearly $60,000, and a reported BTC price of $70,411.45.
Market makers accelerating Bitcoin crash
The dramatic decline in Bitcoin’s price from $77,000 to $60,000 between February 4 and February 7, 2026, was significantly influenced by the actions of options market makers. These market participants were heavily short gamma within the price range of $60,000 to $75,000. Specifically, they held bags of short call or put options at these levels, lacking sufficient hedges or protective strategies to mitigate their risk. According to a noted observation, “short gamma between $60,000 and $75,000, meaning they held bags of short (call or put) options at these levels without enough hedges or protective bets.”
As Bitcoin’s value fell below the $75,000 mark, these market makers moved to sell Bitcoin in both the spot and futures markets. This action was part of their strategy to rebalance hedges and maintain a neutral stance on price movements. In doing so, they injected additional selling pressure into the market, thus exacerbating the price crash. Such activities illustrate how the behavior of market makers in the options market can significantly sway the spot price of Bitcoin, a scenario increasingly observed in line with traditional financial markets.
During early February 2026, Bitcoin’s dramatic price drop to nearly $60,000 was not solely driven by market makers but was further propelled by broader macroeconomic pressures and the sale of exchange-traded funds (ETFs). The environment at that time included various economic factors that applied downward pressure on prices. Additionally, ETF selling contributed to the price decline, as large transactions from these funds can affect supply and demand dynamics in the market.
The incident also highlighted the growing influence of Bitcoin’s options market on its spot price, similar to mechanisms observed in traditional markets. In these settings, market makers are known to amplify price volatility as they adjust their positions. By performing trades to maintain hedge balances, they inadvertently introduce additional forces on spot prices. This episode underscored how closely intertwined Bitcoin’s options market has become with its immediate price movements, paralleling the behaviors seen in more traditional financial markets.
Bitcoin’s price fell from about $77,000 to nearly $60,000 between Feb. 4 and Feb. 7, 2026. The decline was exacerbated by macro pressures and ETF selling, and was further accelerated by market makers’ hedging actions. Options market makers carried heavy short-gamma exposure between $60,000 and $75,000, and as bitcoin moved below $75,000 they sold BTC in spot and futures markets to rebalance positions and maintain price-neutral stances, injecting extra selling pressure. The episode highlighted the options market’s increasing sway over Bitcoin’s spot price.
