CandleFocus

Gamma Squeeze Frenzy: Could Bitcoin Prices Skyrocket Past Six Figures?

The introduction of options trading in the crypto market, specifically for bitcoin, has the potential to create a gamma squeeze. This occurs when traders buy a large volume of call options, leading market makers to hedge their risks by purchasing bitcoin. This creates a feedback loop and increases demand, potentially driving bitcoin prices beyond the $100,000 mark. While this scenario is exciting, it also carries risks, including sharp and unpredictable price swings. Traders should proceed with caution, as the forces at play can lead to rapid reversals. However, if the bullish momentum continues, a gamma squeeze could make six-figure valuations a reality for bitcoin.

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