Bitcoin
and xrp (XRP) Speed laterally, which is probably motivated by a hidden force which maintains the two cryptocurrencies anchored at key price levels.
However, the same “price magnets” could add to the ether (Eth) Market volatility.
We are talking about market manufacturers – Entities responsible for creating liquidity in an exchange book of an exchange. These entities are always on the opposite side of merchants / investors and earn money from the BID -K gap, while constantly striving to maintain a neutral exposure at the price. Their coverage strategies in the term / punctual markets often add to the volatility or volatility of the market.
In the case of the BTC, the market agents of options are “long gamma” at strikes of $ 108,000 and $ 110,000, according to the activity of options listed by Deribit followed by Amberdata. The position indicates that the merchants have long options (Call and put)which had to benefit from potential volatility.
As such, market manufacturers are probably negotiating against market movements – selling high and buying low – to keep the book neutral in direction, effectively keeping BTC pinned in the range of 108,000 to $ 110,000. The BTC price has mainly exchanged said fork this month, according to Coindesk data.
A similar dynamic seems to take place on the XRP market, where a large accumulation of positive market gamma is observed at the exercise price of $ 2.30. This asks manufacturers of manufacturers to buy low and sell high around this level of level ceiling volatility.
Ether subject to volatility
The native token ether in Ethereum, the second largest cryptocurrency by market value, reached a summit of $ 2,647 early today, the level seen for the last time on June 16.
This decision pushed the ether in a “negative gamma market” area from $ 2,650 to $ 3,500. When the dealers have a negative gamma, they tend to exchange in the direction of the market, exacerbating the bull / lowering movements.
In other words, their covering activities could add to Ether’s bullish momentum, exacerbating volatility, assuming that other things are equal.
