On November 10th, COINOTAG reported a significant milestone as Bitcoin (BTC) surged past the $79,000 mark, marking a remarkable weekly gain of 15%. This surge reflects the highest price level seen since February, largely fueled by renewed optimism following the U.S. presidential election. Investors are anticipating enhanced regulation and transparency in the crypto market.
The competitive landscape intensified as the annualized rolling premium of three-month Bitcoin futures on platforms like Binance and Deribit escalated, exceeding 14% for the first time since June, while the CME fruits also demonstrated a strong upward trend, increasing by over 10% on Friday. These movements suggest a bullish market sentiment.
Traders began accumulating upside options at $80,000 in anticipation of a potential price breakout by year-end. Data from Amberdata indicates that this price point holds the highest negative gamma value, implying heightened market volatility as the price approaches this critical threshold. Negative gamma positions may force liquidity providers to engage actively, leading to opportunistic buying which could amplify bullish price movements.
It is important to note that in trading, negative gamma signifies a position where the Delta sensitivity to price fluctuations diminishes, thereby increasing risk exposure during times of heightened market volatility.