Bullish bitcoin traders grab crash protection as Friday's $8.9B expiry nears
Bitcoin traders are showing a bullish bias ahead of Friday's $8.5B options expiry while simultaneously buying puts to hedge against potential volatility from the Fed meeting.Summary
Bitcoin and ether options worth billions are set to expire this Friday, with Bitcoin options totaling $8.5 billion on Deribit. Despite a generally bullish sentiment indicated by a put-call ratio of 0.56, suggesting traders expected strong price action, traders are also actively buying put options, particularly around the $88k and $85k strikes. This hedging activity appears to be a precaution against near-term volatility surrounding the Federal Reserve's rate decision, rather than positioning for a policy-driven sell-off. Although monthly and quarterly expiries can cause short-term swings, the overall impact on the market is expected to be minimal, as the $8.5 billion expiry is less than 1% of Bitcoin's $1.7 trillion market capitalization.
(Source：CoinDesk)