That renewed fears that Fed would begin to gradually unwind liquidity-boosting stimulus earlier than expected.
On the flip side, a hawkish surprise could weigh on asset prices.
According to Patrick Heusser, the head of trading at Zurich-based Crypto Broker AG, the pain trade could be a “risk-off” reaction, resulting in an uptick in safe-haven currencies like the franc, yen and U.S.
The crypto market appears to be in position for a surge in volatility post-Fed.
Gamma refers to the speed of change in the option’s delta – the sensitivity of the option’s price to changes in the price of the underlying asset.
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