BTC and ETH Options Indicate Bearish Sentiment Ahead of Fed’s Interest Rate Decision

According to a recent social media post by Greeks.live researcher Adam, there are now under three hours left before the Federal Reserve’s crucial interest rate announcement. Futures data indicates a 60% chance of a 50 basis point rate reduction and a 40% probability of a 25 basis point cut. This decision has captured the complete attention of all markets, marking an unusually intense focus on interest rate resolutions. Analyzing cryptocurrency options data, there is significant market divergence, with the implied volatility (IV) of ultra-short-term options soaring to 70%, and IV of put options noticeably elevated. Option trade patterns reveal a high concentration of BTC $58,000 put and ETH $2,200 put transactions, suggesting prevailing bearish sentiment towards the impending interest rate decision. Given that a 25 basis point rate cut falls short of market expectations, a 50 basis point reduction would signal worsening economic conditions.