Bitcoin Options Traders Turn Bullish Ahead of Fed Rate Decision

Bitcoin options traders are shifting their sentiment ahead of the Federal Reserve's interest rate decision scheduled for late July. The put-to-call open interest ratio has dropped to 0.52, down from 0.76 in late June, indicating a growing optimism about Bitcoin's price increasing.

Data from Glassnode shows that large traders are actively accumulating $70,000 strike call options, further supporting the bullish sentiment. This shift comes as the market anticipates the Fed's next policy announcement, which could influence risk assets including cryptocurrencies.

The one-week 25-delta skew, a measure of downside protection relative to upside calls, has fallen to approximately 4%, making short-term hedges cheaper for those who still want protection. However, three- to six-month skews remain elevated at 11% to 12%, suggesting that traders continue to hedge against longer-term uncertainty.

The reduction in defensive positioning could amplify any sudden moves if the central bank's decision deviates from consensus expectations, analysts warn.