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Bitcoin options put-to-call ratio falls as Fed uncertainty grows
Bitcoin traded near $63,400 as the put-to-call open-interest ratio dropped to about 0.52, down from 0.76 in late June.
Crypto options positioning has shifted lower for near-term downside protection in the run-up to a major Federal Reserve meeting, according to CryptoSlate.
The Bitcoin options put-to-call open-interest ratio fell to approximately 0.52 from 0.76 in late June, translating to about 52 put contracts open for every 100 calls. At the same time, one-week put skew eased to about 9% from nearly 13% on Friday, indicating traders have become less willing to pay for insurance tied to the near-term Fed outcome.
Fed Funds futures also pointed to a wide range of policy possibilities, with around a 35% probability assigned to a quarter-point rate increase after briefly reaching 40% earlier in the week. CryptoSlate noted this set up a split signal, with interest rate traders seeing unusually varied outcomes while Bitcoin traders trimmed protection against a decline.
CryptoSlate also highlighted that market positioning may be more consequential around Friday options expiry, when large call concentrations sit at $70,000 and $72,000. The outlet said Bitcoin would need to rise more than 10% from Tuesday’s roughly $63,400 level to reach $70,000 before those contracts settle on July 31.
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