Analysis: Tariff threats continue to impact Bitcoin, market makers may amplify market volatility

BlockBeats News, January 20 — Due to Trump’s tariff threats against European countries opposing his “takeover of Greenland,” geopolitical tensions have risen, and bitcoin as well as major cryptocurrencies have fallen in tandem with Nasdaq futures.

In addition to macro bearish factors, internal market mechanisms may also exacerbate price volatility. Data shows that bitcoin options market makers are currently in a negative Gamma exposure in the $86,000–$95,000 range. In a negative Gamma state, market makers often hedge risk by passively buying as prices rise and selling as prices fall, thereby amplifying market swings.

The market is also watching the risk of a Supreme Court ruling on Trump’s tariff policy. Analysts point out that if the ruling is unfavorable, it could trigger greater short-term volatility in trade policy and fiscal deficit expectations.

In traditional markets, the US 10-year Treasury yield has risen to a four-month high of 4.37%. The US dollar has weakened, US stock futures are under pressure, indicating that US stocks and risk assets as a whole are facing headwinds.