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XRP Plunges 12% as Crypto Market Loses $1 Trillion
Bitcoin is currently trading slightly above the much-coveted $100,000 level while Ethereum (ETH) is changing hands at $3,920. However, XRP has taken a drastic hit, plunging by 12% in a matter of hours.
According to Greeks.live, market makers are currently in the process of repositioning their portfolios during the Christmas season when trading volumes tend to drop significantly. US equities could end up experiencing stronger volatility due to reduced liquidity. Traders are expecting sharper moves based on increasing implied volatility (IV). Furthermore, the platform has noted that the influence of the U.S. stock market on crypto prices is becoming more pronounced.
As a result, cryptocurrencies could also succumb to volatility in tandem with stocks. Hence, many traders are using options as a tool for hedging against volatile price movements during this holiday season.
In related news, it was reported earlier today that $2.1 billion worth of Bitcoin (BTC) options are about to expire. This massive amount of derivative contracts could significantly impact the market’s volatility in the coming days, potentially leading to wild swings in prices.
With Christmas just around the corner, many traders and investors will be closely monitoring the situation as markets enter a period of reduced liquidity.
Source: u.today
