Bitcoin Options Market Exposes Itself to Fed Decision Risks

The Bitcoin options market has undergone a significant shift in recent weeks, with traders reducing their downside hedging ahead of the Federal Reserve meeting.

According to Glassnode data, the put/call ratio on open interest has fallen from approximately 0.76 in late June to around 0.52, indicating a sharp reduction in protective puts and an increase in calls.

This trend is also reflected in large traders' accumulation of bullish call positions at the $70,000 strike price, suggesting concrete expectations of upside in Bitcoin's spot price.

However, this reduced hedging comes at a time when market uncertainty is high, with recent bankruptcies and wind-down announcements from blockchain companies and exchanges adding to broader market volatility.