Bitcoin Traders Cut Hedges to 0.52 Put-Call Ratio Ahead of Fed Decision
Updated
Updated · CoinDesk · Jul 27
Bitcoin Traders Cut Hedges to 0.52 Put-Call Ratio Ahead of Fed Decision
3 articles · Updated · CoinDesk · Jul 27
Summary
Bitcoin options traders have unwound much of June’s downside protection, with the put/call open-interest ratio dropping to about 0.52 from 0.76 as the Federal Reserve meets this week.
One-week protection demand has faded far more than longer-dated insurance: 25-delta skew is around 4% for one week versus 11% to 12% for three- and six-month contracts.
implied volatility also points to near-term calm, sitting at 34.3% for one week against 40.8% for six months, an unusual upward slope ahead of a scheduled macro event.
Markets assign only about a 15% chance of a July Fed rate increase, but that light hedging leaves little buffer if Wednesday’s statement or projections jolt expectations.
Bitcoin has held near $65,000 despite a tech-stock selloff that erased $797 billion and a string of crypto-sector bankruptcies and wind-down announcements.