Bitcoin options traders are dropping their hedges going into the Fed meeting
The put/call ratio has fallen to about 0.52 from 0.76 in late June, and one-week downside protection has collapsed in price. The options market is positioned for a quiet week that contains an FOMC decision.
Make preferred on
Share this article
Summary
- Bitcoin options traders have sharply reduced downside hedges since late June, with the put/call open-interest ratio falling to about 0.52 from 0.76.
- Short-dated options show much lower demand for near-term protection than for three- to six-month tenors, signaling traders see this week as calmer even as they insure against turbulence later in the year.
- Implied volatility is subdued across the curve and slopes upward into the future, leaving markets with limited cushion if Wednesday’s Federal Reserve decision or projections surprise investors.
