10X Research: Market Ready for Rebound as Sell-Off Driven by Market Makers in a Liquidity Trap

KuCoinFlash

Release Time: 02/12/2026 09:17:31

BTC

$69,149.205.08%

Summary

On February 12, Markus Thielen, CEO of 10X Research, told Consensus Hong Kong that the Bitcoin sell-off was driven by market makers caught in a liquidity trap. He explained that the rapid surge to $90,000 following the November 2024 U.S. election created a liquidity vacuum. At $87,000, the market hit a trap, with negative gamma triggering forced selling in futures markets. Once the final negative gamma level was reached at $60,000, the market is now positioned for a reversal.

BlockBeats news: On February 12, Markus Thielen, CEO of 10X Research, stated at the Consensus Hong Kong event:

After the November 2024 election, Bitcoin rapidly rose from $70,000 to $90,000 within just 10 to 12 days. This movement occurred with very little trading activity, creating a large gap—a liquidity vacuum.

So when Bitcoin dropped back to $87,000, it fell into this liquidity trap. What followed was a large concentration of negative option gamma at the $75,000 level, meaning market makers were forced to hedge by continuously selling futures.

With the final wave of negative gamma pressure absorbed at $60,000, the situation has shifted to: “Alright, the last market maker has completed their hedge—now we can reverse.”

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