Analysis: Tariff Threat Continues to Impact Bitcoin, Liquidity Providers May Magnify Market Volatility

BlockBeats News, January 20th, due to Trump's tariff threat against European countries opposing his "takeover of Greenland," geopolitical tensions escalated, causing Bitcoin and major cryptocurrencies to fall simultaneously with Nasdaq futures.

In addition to the macro bearish news, internal market mechanics may also exacerbate price volatility. Data shows that Bitcoin options market makers are currently in a negative Gamma exposure range of $86,000–$95,000. In a negative Gamma state, market makers hedge risks and often passively buy on price increases and sell on price declines, thus amplifying market fluctuations.

The market is also watching the potential Supreme Court ruling risk regarding Trump's tariff policy. Analysts point out that if the ruling is unfavorable, it may trigger greater volatility in the short term in trade policy, fiscal deficit expectations, and other areas.

On the traditional market front, the US 10-year Treasury yield rose to a four-month high of 4.37%, the US dollar weakened, and US stock futures came under pressure, indicating overall pressure on US stocks and risk assets.