BlockBeats news, on November 10, according to CoinDesk, BTC broke through $79,000 today, with a weekly cumulative increase of 15%, the highest level since February. Most of the gains have occurred since Donald Trump won the U.S. elections, as his victory raised hopes for greater regulatory transparency in the cryptocurrency industry.
The annualized rolling premium of three-month Bitcoin futures on Binance and Deribit has risen with prices, surpassing 14% for the first time since June. The CME futures basis rose by more than 10% on Friday. The increase in premium reflects a tendency for bullish bets. Traders have been buying call options at $80,000 since before the U.S. elections, anticipating a breakout before the end of the year. Amberdata data shows that there is the largest negative gamma around $80,000, so once the price reaches that level, volatility may increase sharply. Holding negative gamma means maintaining a net short position at a specific level; negative gamma concentrated at $80,000 means that traders or entities responsible for providing liquidity to the order book could buy potential breakouts when the price exceeds $80,000, thus amplifying bullish volatility in the market.
BlockBeats note: In trading, negative gamma refers to the situation where the options position held by investors causes their delta sensitivity to changes in the underlying asset price to decrease. This means that when the price of the underlying asset fluctuates, negative gamma positions can increase the investor's risk, especially during periods of significant market volatility.
