Bitcoin options show that traders are hedging prices down to the $100,000 price level, while geopolitical and economic uncertainty in global financial markets rises.
Over the past 24 hours, the rollout ratio of crypto derivative exchanges has soared to 2.17, reflecting a strong skew on protective bets. The option is offered by giving the contract holder the right to sell at a certain price, especially in short-term contracts. For options that expire on June 20, Puts’ open interest is now at the highest level on the board at $100,000, with fares of 1.16, highlighting concerns about the recent price decline.
Bitcoin It hit an all-time high of $111,980 on May 22 and grew by more than 50% as a crypto-friendly Donald Trump, now a crypto-friendly Donald Trump in November, was elected the second U.S. president in November. The largest cryptocurrency has barely changed, with about $104,377 on Wednesday.
As Fed policymakers increase inflation and labor market risks in the Middle East on geopolitical tensions and fluctuating energy prices, they act with caution. Later on Wednesday, U.S. officials generally expected to maintain policy for a fourth consecutive meeting, with markets focusing on the latest forecasts of the Federal Reserve, unemployment and interest rates.
“The hawkish signal from the Federal Reserve can enhance the dollar and trigger a psychological $100,000 test,” wrote Javier Rodriguez-Alarcón, chief investment officer of XBTO, in a note. “At the same time, the geopolitical situation remains a wildcard; any reliable downgrade in the Middle East can serve as an important risk catalyst, and further deterioration may trigger another transfer of cross-risk assets.”
