Bitcoin
and XRP (Xrp) Handles sideways, which are probably driven by a hidden strength that holds both cryptocurrencies anchored to key levels.
However, the same “prism magnets” can add ether (Eth) Market Volatility.
We are talking about market manufacturers – devices that are tasked with creating liquidity in an Exchange’s order book. These devices are always on the opposite side of the merchants/investors and make money from the bid-ash spread, while constantly striving to maintain a price neutral exposure. Their cover strategies in futures/spot markets often add to or slow down volatility on the market.
In BTC’s case, option market manufacturers “Long Gamma” at Strikes $ 108,000 and $ 110,000, according to derived -note options, traced by amber data. The position indicates that market manufacturers have long options (calls and sets)It is to take advantage of potential volatility.
As such, market manufacturers are probably traded against market movement-sellers high and buy low-to maintain the direction-neutral book, which effectively keeps BTC fixed in the range of $ 108,000- $ 110,000. BTC’s price has mostly traded the said interval this month, according to Coindesk data.
A similar dynamic seems to be playing out in the XRP market, where a large positive market manufacturer Gamma is built at a strike price of $ 2.30. It encourages manufacturers to buy low and sell high around this level cover valve.
Ether inclined to volatility
Ethereum’s native tokenether, the second largest cryptocurrency with market value, hit a high of $ 2,647 early today, the level last seen on June 16.
The move has pushed Ether into a “negative market manufacturer Gamma” zone of $ 2,650- $ 3,500. When dealers have negative gamma, they tend to act in the direction of the market and aggravate bullish/bearish movements.
In other words, their uncovering activities could add ether’s bullish momentum, aggravated volatility, provided other things were the same.
