Analysis: BTC traders seek downside protection ahead of Fed Chairman's speech, options market shows mild risk aversion

Odaily Planet News - Before Federal Reserve Chairman Jerome Powell's upcoming speech about potential interest rate cuts in June, the Bit options market shows moderate risk-averse sentiment. According to Deribit CEO Luuk Strijers, although the market generally expects interest rates to remain unchanged this week, there is only a slight demand for protective put options, reflecting limited caution among experienced traders. Currently, Bit spot prices have fallen to around $94,000, with Deribit's implied volatility index DVOL at a level of 45, the lowest since June 2024, indicating a moderately risk-averse market sentiment. Meanwhile, traders on the decentralized trading platform Derive.XYZ purchased put options with strike prices of $82,000, $78,000, and $76,000, showing concerns about the possibility of the Federal Reserve not cutting or even raising interest rates. Despite the market's expectation of a June rate cut dropping 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)