Bitcoin Options Market Loses Optimism Ahead of Fed Meeting

Participants in the bitcoin options market are taking measured positions ahead of the upcoming December 18 meeting of the Fed and the largest expiration in history. This is reported by CoinDesk.

On December 16, the price of the leading cryptocurrency broke through the $107,000 mark. The following day, it approached $107,800 and at the time of writing stands at $107,300.

Recent flows slightly lean towards bearish sentiment. Traders are less optimistic due to expectations of a “hawkish” easing of Fed policy.

The consensus forecast suggests a reduction in the key rate by 25 basis points and signals of slowing or halting further steps due to high uncertainty.

Such an outcome could increase bond yields, strengthen the dollar, and weaken the case for investing in risky assets, the publication noted.

In contracts expiring on December 20 and 27, puts are trading at a slight premium to calls; the opposite situation is observed on the horizon until March 2025.

In recent weeks, traders have been actively betting on the continuation of the bullish trend. Meanwhile, the degree of optimism was more pronounced in “near-term” options.

Back in April, Syncracy Capital co-founder Daniel Chung predicted a steady regime of buying digital gold “on pullbacks.”

Earlier, CryptoQuant noted retail investors’ belief in the further development of the bullish trend in bitcoin.