Crypto Options Market Makers Keep Bitcoin and Ether Rangebound

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Bitcoin and ether have been experiencing a period of unusual calm for over two weeks, which is partly due to market makers in the crypto options market. Market makers are responsible for maintaining liquidity on an exchange by offering to buy or sell call/put option contracts at any given time. In recent weeks, investors have been shorting or writing call options, leaving market makers with long call positions or positive gamma. This has forced market makers to trade against the direction of spot prices to keep their books delta neutral, resulting in a narrow price range.


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