Analysis: BTC traders seek downside protection before Fed chairman's speech, options market shows mild risk aversion

Odaily Planet Daily News: Prior to Federal Reserve Chairman Jerome Powell's upcoming speech on a possible interest rate cut in June, the Bitcoin options market showed moderate risk aversion. According to Deribit CEO Luuk Strijers, although the market generally expects interest rates to remain unchanged this week, there has only been a slight demand for protective put options, reflecting limited caution among heavily invested traders. At present, the spot price of Bitcoin has fallen to around $94000, and Deribit's implied volatility index DVOL is at a level of 45, the lowest point since June 2024, indicating that market sentiment is biased towards moderate risk aversion. At the same time, traders on the decentralized trading platform Derive.XYZ purchased put options with strike prices of $82000, $78000, and $76000, indicating concerns that the Federal Reserve may not cut interest rates or even raise them. Although market expectations for a June rate cut have dropped to 30%, Bank of America believes Powell may maintain an open attitude towards future rate cuts in his speech, emphasizing that policy will depend on upcoming economic data. （CoinDesk）