Bitcoin, XRP anchored to ‘price magnets’ at $ 110k and $ 2.30 since Ether is prone to volatility


Bitcoin

and XRP (XRP) They are merchant by side, which is probably being driven by a hidden force that maintains both cryptocurrencies anchored to key prices levels.

However, the “price magnets” could add to the ether (Eth) Market volatility.

We are talking about market manufacturers: entities responsible for creating liquidity in the order book of an exchange. These entities are always on the opposite side of merchants/investors and earn money with the offer differential, while constantly striving an exposure to the neutral price. Its coverage strategies in futures/markets of often add up to or stop the market volatility.

In the case of BTC, the manufacturers of the options market are “long gamma” on strikes of $ 108,000 and $ 110,000, according to the options of options that are quoted in Delibit tracked by Amberdata. The position indicates that market manufacturers have long options (Call and Put)that can benefit from potential volatility.

As such, market manufacturers are probably negotiated against market movements, which sell high and buy low, to maintain the neutral book in the direction, effectively maintaining BTC set in the range of $ 108,000- $ 110,000. The BTC price has mainly negotiated this range this month, according to Coindesk data.

BTC Options: Exposure to the Gamma market manufacturer in Delibit. (Amberdata)

BTC Options: Exposure to the Gamma market manufacturer in Delibit. (Amberdata)

A similar dynamic seems to be playing in the XRP market, where there is a large accumulation of a positive market manufacturer at the exercise price of $ 2.30. That requires that manufacturers buy low and sell high around that level of volatility.

XRP options: Gamma exposure of market manufacturers in Deribit. (Amberdata)

XRP options: Gamma exposure of market manufacturers in Deribit. (Amberdata)

Volatility prone ether

Ethereum’s native token ether, the second largest cryptocurrency per market value, reached a maximum of $ 2,647 early today, the level for the last time seen on June 16.

The measure has pushed Ether to an “Gamma negative market manufacturer” area of ​​$ 2,650- $ 3,500. When dealers have a negative gamma, they tend to trade in the market direction, exacerbating bull/bassist movements.

In other words, their coverage activities could increase Ether’s bullish impulse, exacerbating volatility, assuming other things are the same.

Ether options: exposure to gamma of market manufacturers in Deribit. (Amberdata)

Ether options: exposure to gamma of market manufacturers in Deribit. (Amberdata)



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