Bitcoin options show traders are hedging against a price pullback to the $100,000 price level with geopolitical and economic uncertainty lingering over global financial markets.
The put-to-call volume ratio on the crypto derivatives exchange Deribit surged to 2.17 over the past 24 hours, reflecting a strong tilt toward protective bets. Put options, which offer downside insurance by giving the holder of the contract the right to sell at a certain price, saw outsized demand, particularly in short-dated contracts. For options expiring June 20, open interest in puts struck at $100,000 now tops the board, with a put-to-call ratio of 1.16, underscoring concern about a near-term price fall.
Bitcoin reached an all-time high of $111,980 on May 22, and is up more than 50% since a now crypto-friendly Donald Trump was elected president of the US for a second time in November. The largest cryptocurrency was down less than 1% at about $103,620 on Wednesday.
The caution comes as Federal Reserve officials left interest rates unchanged and continued to predict two rate cuts in 2025, citing high uncertainty over the economic outlook that has diminished. Fed Chair Jerome Powell said he expects a meaningful amount of inflation in coming months.
On the geopolitical front, President Donald Trump said Iranians have suggested they visit the White House, while also adding there's a “big difference” in talks now compared to a week ago. When asked about possible Iran strikes, Trump said: “I may do it. I may not do it.” Meantime, Trump also said he told Israel Prime Minister Benjamin Netanyahu to “keep going,” but added he gave no indication that US forces would get involved.
“The geopolitical situation remains a wildcard,” Javier Rodriguez-Alarcón, chief investment officer of XBTO, wrote in a note. “Any credible de-escalation in the Middle East could serve as a significant risk-on catalyst, while a further deterioration would likely trigger another move down across risk assets.”
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