Bitcoin
and XRP (XRP) Trading on the side is likely driven by hidden forces, which keeps both cryptocurrencies fixed at key price levels.
However, the same “price magnet” may increase ether (ETH) Market fluctuations.
We are talking about market makers – entities that create liquidity in exchange order books. These entities are always on the other side of the trader/investor and make money from the bid spread while constantly working to maintain price neutral risk. Their hedging strategies in the futures/spot markets usually increase or curb market volatility.
According to the Deribit listing option activity tracked by Amberdata, taking BTC as an example, the strikes of options market makers were $108,000 and $110,000. This position shows that market makers have long-term options (Call and watch)which will benefit from potential volatility.
Therefore, market makers may be trading with market changes (low-price sales and low-price sales) to maintain directional books, effectively fixing BTC in the range of $108,000 to $110,000. According to Coindesk data, BTC prices are mostly in the above range this month.
Similar momentum appears to be taking place in the XRP market, where the accumulation of large active market makers Gamma was observed at a strike price of $2.30. This calls on manufacturers to buy low and high prices at volatility at the upper limit of this level.
The ether is prone to fluctuation
Ethereum’s Aboriginal token Ethereum (the second largest cryptocurrency by market value by market value by market value) reached $2,647 earlier today, the last level on June 16.
The move puts Ethereum into the $2,650 to $3,500 “negative market maker gamma” zone. When dealers hold negative gamma, they tend to trade in the direction of the market, exacerbating bullish/bearish action.
In other words, their hedging activity may increase the bullish momentum of the ether, exacerbating volatility, assuming that other things are equal.
