The reason for the recent increase in the price of Ethereum (ETH) has become clear

Ethereum surpassed the $3,000 mark early Thursday, a major milestone due in part to hedging activity by market makers in the ETH options market.

This view comes from Griffin Ardern, head of options trading and research at cryptocurrency financial platform BloFin.

According to Ardern, market makers, responsible for providing liquidity to orders, have recently sold many call or bull positions at $3,000. This exposed them to a risk called negative gamma. As ETH approached this level, market makers purchased Ethereum on the spot and futures markets to protect themselves from potential upside risks and maintain overall market risk neutral.

According to the analyst, this hedging activity contributed to the bullish momentum, pushing ETH above the $3,000 mark.

Interestingly, a similar pattern was observed in the Bitcoin market in November, with price increases exceeding $36,000.

Market makers, the entities tasked with providing liquidity to order books, are always on the opposite side of customer transactions. They constantly buy and sell the asset they are interested in to maintain a market-independent ledger.

Ardern said the following regarding the issue in her statement:

“Most of the negative market making is concentrated around $3,000, so market makers need to hedge risk there. A negative gamma means the market maker is placing a lot of trades at the $3,000 strike price. “To manage this situation, market makers must trade in the direction of price movement, purchasing ETH when prices rise.”

As of mid-2023, market makers on the BTC and ETH options markets had positive gamma exposure and were consistently trading against the price direction, limiting price volatility.

*This is not investment advice.

Leave a Reply

Your email address will not be published. Required fields are marked *

Best Exchanges
Buy, trade, and hold 600+ cryptocurrencies on Binance
Buy, trade, and hold 450+ cryptocurrencies on ByBit
Buy, trade, and hold 150+ cryptocurrencies on Kucoin
Buy, trade, and hold 100+ cryptocurrencies on BitFinex 
Buy, trade, and hold 150+ cryptocurrencies on CoinBase

Guru Investing is an independent source of information about investing , not controlled by any broker. All our reviews and guides are created honestly, according to the best knowledge and judgement of the members of our independent expert team; however, they are intended for informative purposes only and should not be construed as, nor relied upon as, legal advice. You should always make sure that you meet all regulatory requirements before making any financial operations . Copyright ©2024 Email for contact [email protected] kashmiri girls sex jayasex desi bhabi xxx xlnindia 1st time sex video たかはししょうこ動画 真正中出し3本番 彩乃なな sex film sexy film xnxx indian teens
ano nga ba ang pangarap hello heart episode 3 reshma hot saree images xvidies com bihar chudai heroine photo hot dasixx ileana d'cruz hot photoshoot hindi movi
www sxe vidoes boops sucking dehati fuck chuk chuk rail gujaratisexvidio probinsyano october 18 2021 full episode ang probinsyano july 14 2022 قصص سكس كرتون سكس بنات تخينة