Bitcoin Drop Below $60K Could Accelerate Liquidations, Warns Deribit Executive

More than $1.2 billion in notional open interest is currently concentrated around the $60,000 strike level for Bitcoin options on Deribit, highlighting it as a key price area, according to Deribit chief commercial officer Jean-David Péquignot.

He added that if Bitcoin were to fall below this level, it could put pressure on market makers, potentially forcing them to adjust positions in spot or futures markets to manage short gamma exposure. Such adjustments could, in turn, amplify trading activity across the market.

Péquignot also warned that elevated leverage in the system may further increase risk, as a sharp downturn could trigger a cascade of liquidations of long positions.

Source: CoinDesk