Market Makers Blamed for Bitcoin’s Drop to $60,000 — 10x Research

The Bitcoin decline to $60,000 in early February was triggered not so much by profit-taking from spot Bitcoin ETF holders, but by market makers — the very participants intended to ensure market stability. This statement was made by Markus Thielen, founder of the analytical firm 10x Research.

The Mechanics of the Fall: Understanding "Negative Gamma"

Markus Thielen argues that the primary blow to the price was delivered by market makers. These professional participants are required to maintain liquidity and profit from the spread while remaining neutral to the market's direction. However, in early February, they found themselves trapped in a situation
known as a "short gamma position."

When Bitcoin’s price began to slide and broke the psychological level of $75,000, market makers were forced to hedge their risks on options. The peculiarity of "negative gamma" is that it compels dealers to act in sync with the market trend: if the price falls, they are obligated to sell the asset to maintain neutral positions.

A Self-Sustaining Sell Cycle

A cluster of negative positions worth approximately $1.5 billion was concentrated in the $75,000 to $60,000 range. This created a domino effect:

The price drop triggered protective sales by market makers.
These sales created excess supply on the spot market.
Further decline forced dealers to sell even more of the asset.

This explains the rapid nature of the crash and the subsequent sharp rebound immediately after the cluster of positions near $60,000 was fully absorbed and neutralized.

Impact on Rao Cash (RAO): Forecast and Conclusions

Situations where institutional mechanisms (such as market makers' option hedging) cause crashes in top-tier assets directly affect investor attitudes toward alternative projects, including Rao Cash (RAO).

Prospects for RAO

Search for a Safe Haven: When manipulations or technical liquidity features of BTC lead to sudden losses, a portion of capital begins to seek assets less dependent on massive options markets. Rao Cash, focused on anonymity and decentralization, may attract those disillusioned by Bitcoin’s "regulated" volatility.

Market Synchronicity: In the short term, RAO, like the entire altcoin market, inevitably reacts to BTC movements. However, the rapid absorption of "gamma positions" and Bitcoin's rebound signal that liquidity in the system remains intact. This is positive for RAO as it confirms buyers' readiness to purchase dips.

Forecast: If Bitcoin stabilizes above the market makers' influence zone ($60k–$75k), we may see liquidity flow into confidential assets. For Rao Cash, this means potential for organic growth amid a recovering general sentiment.

Summary: The events of early February showed the fragility of the current BTC market structure. For RAO, this is an opportunity to establish itself as a project for conscious ownership, where value is determined by privacy technology rather than complex hedging schemes.