The Milk Road Show Bitcoin Stuck? Coinbase Expert Reveals What’s REALLY Controlling the Price w/ David Duong
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Feb 27, 2026 David Duong, Head of Institutional Research at Coinbase and options market specialist, breaks down what’s really moving Bitcoin. He talks dealer hedging and how negative gamma can amplify moves. He highlights concentrated gamma pockets, institutional flows, tokenization trends, and why narratives about price suppression persist. Short, sharp takes on market structure and potential triggers for big moves.
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Gamma Explains Dealers Amplifying Bitcoin Moves
- Gamma measures how quickly an option's delta changes as Bitcoin's spot price moves.
- Dealers' hedging behavior (buy when price rises, sell when it falls) makes gamma a force that can accelerate price trends.
Negative Gamma Pinned Prices Around Sixty To Seventy K
- Negative gamma around a price region forces dealers to sell into weakness and buy into strength, which can pin or accelerate Bitcoin's price.
- David Duong points to concentrated negative gamma in the $60k–$70k zone as a driver of recent rapid drops from the $80ks.
Options Open Interest Now Materially Influences Spot
- Options open interest has grown since 10-10 and sometimes outpaced perpetuals, increasing options' structural influence on spot price.
- Market participants used defensive puts and bear spreads, showing active hedging and directional positioning.