Bitcoin Holds Firm Above $65K as Traders Eye Fed Decision
Bitcoin continues to hold above $65,000 despite a recent decline in AI stocks. The price stability comes as traders await the Federal Reserve's decision on interest rates, which could have a significant impact on the cryptocurrency market.
The put/call ratio has fallen, indicating that traders are reducing their downside hedging ahead of the Fed meeting. This suggests that investors may be confident about Bitcoin's prospects despite the uncertainty surrounding the Fed's decision.
According to CoinDesk, the put/call ratio on open interest fell to around 0.52 from 0.76 at the end of June. This means that calls are gaining market share, with large traders accumulating call options with a $70,000 strike and bullish call spreads.
The Currency analytics noted that CME's FedWatch tool priced a 33% chance of a Fed rate increase, while prediction markets sat around 19%. The data day to watch is Thursday, when the United States' second-quarter GDP and June personal consumption expenditures reading will be released.