Bitcoin (BTC) Options Market Flummer Signal Moderate Risk Aversion Prior to Federal Reserve (Fed) President Jerome Powell’s expected remarks on a potential June rate cut Wednesday.

“While Federal Reserve is expected to keep the rates stable at this week’s meeting, we have only seen a certain nuanced demand for protective BTC sets, reflecting limited care among sophisticated dealers,” said Luuk Strijers, CEO of leading crypto options that exchange.

A PUT setting gives the buyer the right but not the obligation to sell the underlying asset at a predetermined price of or before a specific date. Think of it as an insurance against price guard. Dealers typically buy putting options when seeking to take advantage of or protect long spot market positions against market breaks.

Deribit is the world’s leading crypto option exchange that records billions of dollars in daily trading volume. On derivative, an option contract represents a BTC.

Strjers explained that the market for wider opportunities has not shown a strong directional bias or a decisive slope towards downward coverage.

“Spot BTC is withdrawn to about $ 94K, and Deribit’s DVOL, our implied volatility index, sits at 45 levels, we last observed in June 2024. In total, this suggests a moderate risk-off mood, but not yet a panic-driven rush for protection,” Strijers said.

DEX Traders Loading on Puts

However, dealers operating on decentralized exchange, however .xyz seemed more cautious and concerned about downward risks.

“There is evidence that the non-protection of downward-facing, as dealers also buy, sets $ 82K, $ 78K and $ 76K strikes, probably due to concern about the Federal Reserve Board meeting that couldn’t lead to any frequency breaks or worse, hiking,” Dr. Sean Dawson, head of research on leading decentralized on-chain options that are AI-Powered Platform Bending.

Decre, formerly Lyra, is one of the leading platforms on the chain that accounts for over 20% of the total $ 1.38 billion activity in April, according to Data Source Defillama.

On Wednesday, Fed is likely to keep the benchmark interest stable in the range of 4.25%-4.50%. It is a prior conclusion.
At the same time, Powell is likely to maintain the broad data -dependent attitude of the press conference after decision.

Focus on June Rate Cut Talk

However, Powell could be asked about the prospects of a betting on June, and the economic uncertainty derived from President Donald Trump’s recent tit-for-TAT-trading war with China.

Dex Traders’ anxiety probably comes from what Powell could say about the two questions.

Until last Friday hotter than expected release of non-farm wages, Markets expected that Fed should reduce rates by a quarter of percentage point in June. However, the strong job report has displaced market expectations, where dealers now see only a 30% chance of one step in June.

“Market participants are watching carefully next week’s FOMC meeting to see if Fed gives a stronger signal that it is considering resuming interest rates cuts at the following FOMC meeting in June. After today’s solid non -yard salary report for April, it is less likely that Fed will create a cut in June, which is now more dependent on the in -depth US financial data,” Senior Currency Analy to Clients on May 2nd.

Risk assets, including BTC, can come under pressure if Powell is strongly pushing back to the clip in June and expressing the fear of stagflation. Similar reaction can be seen if the assessment of uncertainty in the policy statement is upgraded to reflect the development of trade war since April.

However, the Bank of America (BOFA) expects Powell to keep the door open for a potential rate cut in June.

“Powell is likely to be asked about the prospects of a June cut. The pillar for it seems high as the 90-DATA break on the mutual tariffs will not end before July. We still don’t think Powell wants to exclude a clip in June,” Bofa’s global research team said in a note to clients on May 2.

“It’s easier to simply state that Fed is data dependent and vigilance of risks to both of its mandates and then let the data speak.”