Key Market Dynamic Keeps Bitcoin, XRP Anchored to $110K and $2.3 as Ether Looks Prone to Volatility
2025-07-09 07:13:34
Main Idea
Market makers' hedging activities are keeping Bitcoin (BTC) and XRP anchored to key price levels, while Ethereum (ETH) is more prone to volatility due to negative gamma exposure.
Key Points
1. BTC and XRP are trading sideways, likely due to market makers' activities, with BTC anchored between $108,000-$110,000 and XRP around $2.30.
2. Market makers are 'long gamma' at BTC strikes of $108,000 and $110,000, which helps maintain price stability by buying low and selling high.
3. XRP's price is similarly influenced by market makers' gamma exposure at the $2.30 strike price.
4. ETH is more volatile due to 'negative market maker gamma' in the $2,650-$3,500 range, which can exacerbate price movements.
5. The analysis is based on options market data from Deribit tracked by Amberdata.
Description
Bitcoin (BTC) and XRP (XRP) are trading sideways, which is likely being driven by a hidden force that's keeping both cryptocurrencies anchored to key price levels. However, the same "price magnets" might add to the ether (ETH) market volatility. We are talking about market makers – entities tasked with creating liquidity in an exchange's order book. These entities are always on the opposite side of traders/investors and make money from the bid-ask spread, while constantly striving to maintain a ...
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