The unusual calm in the $BTC and $ETH markets amid host of macroeconomic uncertainties probably stems from the hedging activity of crypto options market makers. godbole17 reports.
Bitcoin and ether , the top two cryptocurrencies by market value, have been unusually calm for over two weeks. The range play probably stems from the market running into competing narratives and influences.of crypto options market makers, partly responsible for keeping prices rangebound, according to observers.
Market makers, therefore, are always on the opposite side of investors and maintain a delta-neutral book by actively buying and selling the underlying asset in the spot or futures market as the price swings.or writing call options or bullish bets, a popular volatility-selling strategy aimed at generating a yield on top of spot market holdings. As such, market makers have been stuffed with long call positions or positive gamma.
"In the absence of a catalyst/narrative to start taking a directional risk, that systematic, mechanical volatility selling will keep weighing," Brickell added. "In the case of positive gamma, the delta hedging behavior of market makers is to sell high and buy low, which compresses the price movement range to near the strike price," Ardern told CoinDesk."After the settlement, the sticky effect of hedging on the price will significantly weaken, but there could be stronger resistance, particularly in ETH. It is necessary to be careful about the risk of ETH price going downwards.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South Carolina governor signs bill restricting abortion access into lawThe act prohibits abortions after a fetal heartbeat has been detected, with exceptions for the life or health of the mother, medical emergencies, fatal fetal anomalies, and, up to twelve weeks of pregnancy, in cases of rape or incest.
Read more »
The Supreme Court gift list: Paintings, guns, and a sculpture of a handAs Congress ramps up scrutiny of gift disclosures, here are some of the unusual items that justices have reported receiving in the past two decades.
Read more »
Cops unveil new ice cream truck to hand out free treats to N.J. communityThe 'Bomb Pop Patrol' will offer free popsicles and ice cream to residents as police officers focus on 'community caretaking,' officials said.
Read more »
Tesla customers cancelling orders after right-hand drive sales stop | AutocarTesla customers are cancelling their orders and flocking to rival firms after it chose to stop selling right-hand drive models
Read more »
Long Live The Folding Hand Fan, Summer's Most Functional & Glamorous AccessoryWhen it comes to being practical and stylish, there’s few staples that can get the job done like a folding fan.
Read more »
Bill restricting trucks to the right lane will create a ‘wall of trucks’ on N.J. highways, opponents sayA bill to limit trucks to the right lane on certain N.J. highways is up for a vote Thursday.
Read more »