Bitcoin Traders Build Downside Convexity Ahead of FOMC

Bitcoin traders are taking precautions ahead of the September 15-16 FOMC meeting. Data from options markets shows a clear put skew, indicating that implied volatility on short-dated puts is higher than comparable calls.

This means market makers are pricing in asymmetric demand, with more buyers wanting downside protection than upside exposure at equivalent strike distances from spot.

The 25-delta put skew for the September 25 expiry came in about 1.44 percentage points above comparable calls, according to positioning data from the period.

Elevated put premiums on near-term expiries against a backdrop of call-heavy aggregate positioning point to event-driven hedging rather than a broad structural shift toward bearishness.