Bitcoin traders expect BTC to rally if the Fed rolls out a 0.50% rate cut, but hedging these bullish positions is also necessary. Here is how it's done.
Bitcoin (BTC) has repeatedly failed to close above the $62,000 level since Aug. 3 and is currently down 11% over the past 30 days. More notably, the cryptocurrency has decoupled from the S&P 500 index, which is up 1% in the same period and only 1% below its all-time high.
Bitcoin price in USD (right) vs. S&P 500 futures (left), 12-hour. Source: TradingView
Investors expect that risk markets, including Bitcoin, could see significant gains if the Federal Reserve (Fed) cuts interest rates, and professional traders are using BTC options to maximize gains while limiting risks.
