Bitcoin Traders Barely Insured as Fed Meeting Looms
Bitcoin's price has been stuck near $65,000 for most of July, and analysts at Bitfinex are warning that traders have entered this week's Federal Reserve meeting with minimal downside protection.
The firm notes that the 30-day put skew fell from 6.5 volatility points on July 14 to just 2.2 by July 23, giving the market its lowest downside insurance since June.
This lack of protection comes as traders reduced hedges during the crypto market's rally in mid-July and have yet to reinstate them.
The analysts at Bitfinex believe that a supply wall will exist at $68,000, where the prices of 3.55 million BTC bought in the last six to twelve months cluster.
This level is significant because it marks the point at which underwater holders usually sell into strength.