Bitcoin Options Traders Reduce Downside Hedging as Implied Volatility Stays Low

Bitcoin options traders have sharply reduced downside hedging since late June, with the put-to-call open interest ratio falling from 0.76 to about 0.52. According to Odaily, short-dated options show less demand for near-term protection than contracts with three- to six-month expirations, suggesting traders expect a calmer market this week while still hedging for later volatility this year. Implied volatility across maturities remains low, and the term structure is sloping upward toward the future. If Wednesday's Federal Reserve rate decision or projections are outside investor expectations, the market has limited room for a buffer.