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Bitcoin Traders Strip Away Hedges Ahead of Critical Fed Meeting

July 27, 202608:53 AM
Bitcoin Traders Strip Away Hedges Ahead of Critical Fed Meeting

Bitcoin options traders are aggressively unwinding their downside protection ahead of the upcoming FOMC decision. The put/call ratio has plummeted from 0,76 in late June to approximately 0,52, signaling a massive shift in market positioning as investors move away from defensive hedges.

This collapse in the price of one-week downside protection suggests the options market is bracing for a quiet week. However, this lack of hedging leaves the Bitcoin market vulnerable to sudden volatility if the Federal Reserve's decision deviates from the current consensus of a calm market.

As it stands, the options market is positioned for a quiet week, even though it contains a major FOMC decision. This reduction in hedging suggests that traders are betting on stability, though such positioning often precedes unexpected volatility if the Fed's stance surprises the market.

This is a summarized and adapted version by Artificial Intelligence. To read the complete original story, visit the official source.

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