BTC longs are increasing in size, and Bitcoin options have become more cautious.

Takeaways from the conference:

• Bitcoin option delta skew increased above 7% neutral level, indicating cautious traders sentiment before the US Fed’s decision.

• The long-to short ratio among top traders, and the $292 million inflows into spot ETFs supports optimism despite mixed BTC-derivatives.

BitcoinBTC() reached the $117,000 mark on Wednesday, but traders failed to keep up their bullish momentum as they weighed whether a Federal Reserve rate cut was already factored in. The market sentiment was dampened further by rumors about new restrictions on the sale of artificial intelligence microchips to China.

Bitcoin traders are hedging their bets ahead of the US Federal Reserve’s decision or placing bearish wagers on $110,000 in anticipation of a heightened level uncertainty regarding AI demand following Wednesday’s 2.6% drop in Nvidia shares (NVDA).

It is important to note that the word “you” means “you”. Bitcoin options On Wednesday, the delta skew was above the neutral 7% threshold. This indicates that call (buying) and put (selling) options trade at higher prices. This shift, while not extreme, is typical of bearish markets. It contrasts with the neutral level 5% observed earlier in this week.

According to the Financial Times, China’s Internet regulator has banned companies from buying certain Nvidia chips. Nvidia CEO Jensen Huang was quoted by AP as saying that the company’s board of directors has approved his resignation. said Response: “I’m disappointed with what I see, but they have larger agendas to work out, you know, between China and the United States, and I’m understanding of that, and we’re patient about it.”

Bitcoin traders brace for Fed rate decision

If you want to know if there was an increase in trading volume, then it is important that you examine what premiums were paid. As traders rush to buy, the premium for put-to-call options will rise sharply. strategies to hedge They are positioned in a variety of ways.

Deribit’s BTC put-to call ratio currently stands at 71%. This reflects a low level of appetite among traders for neutral to bearish positions. In the last instance, on April 8, when Bitcoin dropped below $75,000 in just five months for the first ever time, levels over 180% indicated extreme fear.

The data presented here contradicts the idea of an impending doomsday or over-reaction to trade wars and uncertainty in the artificial intelligence industry. The overall sentiment of Bitcoin traders appears to be primarily influenced by the US Fed Chairman Jerome Powell’s comments following the interest rate decision Announcement is better than panic and overreaction on the market.

Related: Bitcoin whale awakens after 12 years, transfers 1,000 BTC before US Fed meeting

Bitcoin traders are optimistic as ETFs and spot inflows boost Bitcoin sentiment

Long-to-short trading ratios of the top exchange traders provide a more comprehensive measure of market sentiment as they include futures, spot, and margin markets.

Binance’s and OKX’s top traders increased their long positions (bullish) on Wednesday, despite mixed signals in the BTC options market. Market makers and whales expected Bitcoin to rise in price but were shocked when it dropped below $115,540.

On Tuesday, the $292 million in net Bitcoin exchange-traded fund (ETF) flows likely fueled trader confidence. expectations of $120,000 The price of the product is expected to rise. The ultimate result will be determined by the likelihood of a more restrictive US monetary policies and a possible further de-escalation to the US-China tariffs discussion.

The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. These are solely the opinions, views and thoughts of the author and may not reflect the opinions and views of Cointelegraph.