QCP analysts have allowed a Bitcoin gamma squeeze upon consolidating above $94 000 - ForkLog: cryptocurrencies, AI, singularity, future

Froklog · 2025-12-29T13:09:15+00:00

Analysts at QCP Capital noted that Bitcoin's recent rise above $94,000, driven by low liquidity during the holiday season, could trigger a gamma squeeze. Strong buying interest and anticipated new acquisitions by investor Michael Saylor contributed to volatility. However, caution is advised as long-term trends remain uncertain, with significant capital away from the market.

Froklog

2025-12-29 13:09:15

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# Bitcoin analysts have allowed for a gamma-squeeze if it consolidates above $94 000

The first cryptocurrency rose by approximately 2.6% during the Asian session, repeating the trading dynamics after Christmas. QCP Capital analysts linked volatility spikes to low liquidity in the “holiday market.”

Experts noted that the growth was not caused by a cascade of short liquidations — the volume of closed positions was less than $40 million.

The main driver was buying on the “thin market.” Additional demand could have been created by Michael Saylor: the founder of Strategy hinted at new Bitcoin acquisitions, which energized buyers.

Back to Orange. pic.twitter.com/J3lnpOObER

— Michael Saylor (@saylor) December 28, 2025

Analysts also recorded a jump in funding rates for perpetual contracts on Deribit above 30%. After the October 26 options expiration, market makers shifted positions toward a “gamma short”: as the price rises, they are forced to buy the asset for hedging, creating a feedback loop.

This mechanism manifested when breaking above $90 000. Further consolidation above $94 000 could trigger a full gamma-squeeze and accelerate the rally.

Risks and forecasts

The support level $86 000 held despite outflows from ETFs and selling pressure in the US session. Demand for protective put options decreased: major players did not transfer December puts with a strike of $85 000.

QCP warned that it is too early to draw conclusions about the long-term trend. After a record expiration, open interest fell by 50%. A significant portion of capital is outside the market.

Trading is likely to continue without significant dynamics until the end of the year. Volatility is expected to return once traders start re-establishing positions in January, analysts concluded.

Recall that Wintermute experts pointed to capital concentration in Bitcoin and Ethereum.

ETH0,46%

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