The CEO of SynFutures believes that BTC's recent drop below a crucial price level after a month is merely a short-term anomaly caused by the dynamics of derivatives trading data.
BTC dealers are currently burdened with unprecedented levels of negative gamma. Even a small fluctuation in the spot price has the potential to ignite a highly volatile situation, as remarked by one observer, 'we could witness fireworks,'
Traders are frantically seeking out bitcoin calls or bullish positions following the cryptocurrency's abrupt surge, propelling it close to $31,000.
There is no indication of panic in the implied volatility metrics following the SEC's filing of lawsuits against the two cryptocurrency exchanges.
The recent hedging activity of market makers, who consistently take the opposite side of investors' trades, appears to have effectively maintained price stability within a narrow range.
With the presence of the spot market, traders no longer need to seek out other exchanges to trade major cryptocurrencies and can instead execute multi-leg complex strategies in one convenient location.
Currently, contracts for micro-sized BTC and ETH futures expire three times a week. However, CME has announced that it will increase the frequency of their daily expirations.
Michael Safai stated that due to its inherent stability, Bitcoin is not necessarily the most buzzworthy topic of discussion.
In leveraged perpetual futures markets, liquidations occur when bullish long and bearish short positions are forcibly closed. Such actions tend to amplify price movements, contributing to higher volatility.