"Bitcoin's Volatility May Increase Near $90,000 Due to Market Maker Hedging Impact"

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Summary

It was stated that Bitcoin's volatility could increase if it approaches $90,000.
Market makers might be forced to trade near $90,000 due to their short gamma position.
Griffin Ardern mentioned that market makers' hedging could stimulate price volatility, increasing the likelihood of Bitcoin rising.

Bitcoin (BTC) has seen a slight rebound, and there is analysis suggesting that its volatility could increase around the $90,000 range.

On the 26th (local time), CoinDesk reported, "According to Deribit data, option market makers are in a 'short gamma' position at the $90,000 strike," adding, "This could lead to increased Bitcoin volatility near $90,000." A short gamma position means that as the underlying asset's price fluctuates significantly, market makers must continuously trade in the direction of the price to avoid losses. Consequently, as the price approaches $90,000, market makers are compelled to sell if the spot price falls and buy if it rises.

The media stated, "Market makers aim to maintain a counter position (market-neutral position) to traders to provide liquidity to the market," noting that the $90,000 range is a crucial price level that could determine Bitcoin's future trend.

Griffin Ardern, a senior analyst at Blofin Academy, said, "Market makers' hedging could further stimulate price volatility. It will have a significant impact on the market even after the Friday options expiration," adding, "Currently, it seems more likely that Bitcoin will rise."

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