Market makers are expected to maintain the stability of Bitcoin’s price around $100,000 despite concerns of an overheated market and potential pullbacks. This is due to their hedging activity and the options market providing support for the cryptocurrency.
Market Makers May Keep Bitcoin Around $100K as Overheated Market Faces Pullback Risks
The recent surge in the price of Bitcoin (BTC) has raised concerns about an overheated market, with some analysts warning of potential pullbacks. Despite this, market makers may continue to support the price of Bitcoin around $100,000 due to their hedging activity.
Market Conditions
Market Makers’ Role
They tend to sell their holdings when options prices rise faster than the underlying asset (positive gamma imbalance), acting as a contrarian force and limiting price swings.
Options Market Support
The options market may provide support for Bitcoin’s price, with Griffin Ardern suggesting that BTC can be stable at around $100,000 in the short-term.
Analysts’ Views
