Bitcoin options traders have reduced their downside protection ahead of the Federal Reserve’s most uncertain decision in two years. The put-to-call ratio has fallen to 0.52 from 0.76 in late June, leaving nearly $5 billion in call options at the $70,000 and $72,000 strikes exposed to Friday’s expiry. The Fed’s two-day meeting began Tuesday with a decision expected at 2 p.m. ET Wednesday. Fed Funds futures assign approximately 35% probability to a quarter-point rate increase. HSBC described this as the most uncertain Fed decision in two years, amid Chair Kevin Warsh’s retreat from the forward guidance that previously helped investors narrow likely outcomes.
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