Bitcoin : Market Makers Positions Weaken Market Stability

The cryptocurrency market is going through a phase where price movements could become more difficult to anticipate. Behind the fluctuations of Bitcoin and Ether, market makers’ hedging strategies play an important role. According to Greeks.Live data, their exposure to options currently presents a configuration likely to accentuate movements in both directions. This situation particularly concerns the derivatives markets and could trigger chain reactions during upcoming fluctuations. Data published by Greeks.Live shows negative gamma exposure across a large part of Bitcoin’s current trading zone. This configuration also concerns Ether , which has a comparable structure in its options market. For BTC, the largest concentrations appear around $68,000 and $70,000. These levels represent particularly sensitive zones for brokers’ hedging operations.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to Cointribune.