The implication doesn’t stop there. According to Imran Lakha, founder of Options Insights, traders have a “net long gamma exposure” above $70,000. This means that traders striving to maintain market neutral exposure while making money on the bid-ask spread will short or sell to strength above 70,000 to remain neutral or hedged.
“That hedging acts as a brake that limits how fast BTC can go once it gets up there,” Lakha said, adding that ether (ETH) is not as exposed to trader gamma dynamics and can rout much faster.
Bitcoin recently changed hands near $64,100, down nearly 1% since midnight UTC. Other major cryptocurrencies including ether, XRP (XRP) and solana (SOL) nursed similar losses, while Nasdaq 100 index futures fell 0.5%.
“As always, there is a risk of a sudden sell-off amid financial market shocks, which could send BTC or global stock indices into a tailspin, but waiting for such moments is a thankless task,” said Alex Kuptsikevich, Chief Market Analyst at FxPro. “Under such conditions, buying in a quiet market at less than half the peak levels appears to be a perfectly reasonable tactic for the coming days or weeks.”
Pay attention!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today. For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
