Bitcoin Traders Seek Downside Protection Ahead of Fed Chair Powell’s Comments

Bitcoin (BTC) options market flows signal moderate risk aversion ahead of Federal Reserve (Fed) Chair Jerome Powell's expected remarks on a potential June rate cut Wednesday.

"While the Federal Reserve is widely expected to hold rates steady at this week’s meeting, we have only seen some nuanced demand for protective BTC puts, reflecting limited caution among sophisticated traders," said Luuk Strijers, CEO of leading crypto options exchange Deribit.

A put option gives the purchaser the right but not the obligation to sell the underlying asset at a predetermined price on or before a specific date. Think of it as an insurance against price swoons. Traders typically buy put options when looking to profit from or protect long spot market positions from market downturns.

Deribit is the world's leading crypto options exchange, registering billions of dollars in daily trading volume. On Deribit, one options contract represents one BTC.

Strjers explained that the...

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