Teacher Zhuang: After a few hours of waiting, someone finally opened a short position.
Little Brother Zhuang: I'll pump it and not waste a single penny. $AKE #ake
Little Brother Zhuang: I'll pump it and not waste a single penny. $AKE #ake
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Btc龙宫
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$AKE No one is opening new shorts right now, so the market maker has no momentum to push higher and can only stay range-bound for now.
But staying range-bound for a long time also means the long side’s funding fees are a cost.
Let’s put ourselves in the market maker’s shoes: what can they do now?
1. Push higher to attract shorts? Will retail traders open shorts? At the same time, this gives those who bought near the bottom a chance to sell at the top;
2. Stay range-bound? Wait for more shorts and longs to pile up, then take profits once the time is right. Funding fees on the long side are a cost;
3. Push lower? The current market can’t absorb the market maker’s accumulated positions. If they push lower, they’ll have to pull it back up, oscillating back and forth to create volatility and attract players. Again, the costs are unpredictable.
Until new positions come in, they can only stay range-bound and wait for an opportunity.
You don’t open shorts, I don’t open shorts; you don’t open longs, I don’t open longs. Wait for retail longs to take profits, while the market maker bears the long side’s funding fees. Once they can’t hold out any longer, it’s over.
#ake
But staying range-bound for a long time also means the long side’s funding fees are a cost.
Let’s put ourselves in the market maker’s shoes: what can they do now?
1. Push higher to attract shorts? Will retail traders open shorts? At the same time, this gives those who bought near the bottom a chance to sell at the top;
2. Stay range-bound? Wait for more shorts and longs to pile up, then take profits once the time is right. Funding fees on the long side are a cost;
3. Push lower? The current market can’t absorb the market maker’s accumulated positions. If they push lower, they’ll have to pull it back up, oscillating back and forth to create volatility and attract players. Again, the costs are unpredictable.
Until new positions come in, they can only stay range-bound and wait for an opportunity.
You don’t open shorts, I don’t open shorts; you don’t open longs, I don’t open longs. Wait for retail longs to take profits, while the market maker bears the long side’s funding fees. Once they can’t hold out any longer, it’s over.
#ake