BTC options traders cut downside hedges ahead of Fed meeting

Bitcoin options traders have sharply reduced downside hedges ahead of the Federal Reserve’s rate decision at the end of July, CoinDesk reported. According to Glassnode, the put-to-call open interest ratio fell to 0.52 from 0.76 in late June, indicating a heavier weighting toward call options tied to bullish expectations. Large traders have been actively accumulating $70,000 call options. The one-week 25-delta skew has dropped to around 4%, lowering the cost of short-term downside protection, while three- to six-month skews remain at 11% to 12%, indicating continued hedging against longer-term uncertainty. One-week implied volatility, at 34.3%, stands below the six-month tenor’s 40.8%, suggesting the market expects a relatively calm Fed announcement. Even so, analysts noted volatility could rise sharply if the Fed’s policy decision deviates from expectations, as defensive positioning has thinned.