Odaily News Bitcoin options markets are showing 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, despite widespread expectations that interest rates will remain unchanged this week, only slight demand for protective put options has emerged, reflecting limited caution among veteran traders.
Currently, the spot price of Bitcoin has fallen back to about $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. At the same time, traders on the decentralized trading platform Derive.XYZ purchased 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 interest rates. Although market expectations for a rate cut in June have fallen to 30%, Bank of America believes that Powell may remain open to future rate cuts in his speech, emphasizing that policy will depend on upcoming economic data. (CoinDesk)