Understanding Crypto Market Volatility Amidst Upcoming Macro Events

IconCryptoNewsTerminal Staff30 Jul, 2024

cryptonews.jpg

Understanding Crypto Market Volatility Amidst Upcoming Macro Events

A recent analysis by cryptocurrency asset management firm Blofin highlights the potential impact of upcoming macro events on the Bitcoin (BTC) market. Blofin's report indicates that with risk aversion prevailing due to events like the FOMC meeting, BTC's price dynamics may deviate from that of other assets. Negative gamma, a market indicator signaling potential volatility, has been observed within the $65,000-$70,000 range for BTC. This suggests that volatility is likely to increase as the August 2nd options expiry approaches. In light of these observations, Blofin advises market participants to exercise higher levels of risk management. The confluence of macro events and elevated gamma levels creates a landscape where substantial price fluctuations are possible, necessitating prudent trading strategies.

Related News