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Options Market Makers' Hedging Activity May Increase Bitcoin and Ether Price Swings
(16 hours ago) · 1 source · Summarized by CryptoBipto
A report discusses how options market makers' hedging behavior could amplify price volatility in bitcoin and ether markets. The dynamic, sometimes called gamma exposure, involves dealers adjusting their positions in ways that can reinforce existing price movements.
WHY IT MATTERS
When you buy or sell bitcoin on an exchange, the price you see is shaped by many forces — not just regular buyers and sellers.
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SOURCES
- coindesk.com
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