The recent approval of options for BlackRock's Bitcoin ETF is a big deal for the crypto world.
These options could trigger what is known as a "Gamma squeeze."
A sudden jump in price, similar to what happened with GameStop stock in 2021.
This happens when many people bet that the price of Bitcoin will go up (by buying call options), which forces market makers to buy more Bitcoin, driving its price even higher.
While this may sound exciting, some experts believe that in the long run, the increasing involvement of large institutions will actually make Bitcoin less volatile.
Why? Because institutions typically use safer, more balanced strategies that can stabilize the market, reducing extreme price fluctuations over time.
My take đĄ
These developments could create short-term excitement in the price of Bitcoin, but they also pave the way for a more stable future for the cryptocurrency as institutions play a larger role.
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