Analysis: BTC traders seek downside protection ahead of Fed Chairman's speech, options market shows mild risk aversion
05-06 12:43
Odaily News The Bitcoin options market showed mild risk aversion ahead of Federal Reserve Chairman Jerome Powell's upcoming speech on a possible rate cut in June. According to Deribit CEO Luuk Strijers, only slight demand for protective put options emerged despite widespread expectations that interest rates would remain unchanged this week, reflecting limited caution among senior traders. Currently, the spot price of Bitcoin has retreated to around $94,000, and Deribit's implied volatility index DVOL is at 45, the lowest since June 2024, indicating that market sentiment is biased towards mild risk aversion. Meanwhile, traders on the decentralized trading platform Derive.XYZ bought put options with strike prices of $82,000, $78,000 and $76,000, showing concerns that the Federal Reserve may not cut interest rates or even raise them. Although market expectations for a rate cut in June have fallen to 30%, Bank of America believes that Powell may keep an open mind on future rate cuts in his speech, emphasizing that policy will depend on upcoming economic data. (CoinDesk)
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