Bitcoin option traders reduce downside hedging ahead of Fed meeting

Odaily Planet Daily News Bitcoin option traders have significantly reduced downside hedging since late June, with the put/call open interest ratio falling from 0.76 to approximately 0.52. Short-term options indicate that traders' demand for near-term protection is lower than for options with 3 to 6-month maturities, suggesting they anticipate a calmer market this week while still hedging against potential volatility later in the year. Implied volatility across all tenors is at low levels, with the term structure sloping upward. If the Federal Reserve's interest rate decision or projections on Wednesday exceed investor expectations, the market has limited buffer room. (CoinDesk)