Bitcoin

Bitcoin investors are not leaving anything to chance as they gear up for theU.S. Securities and Exchange Commission’s (SEC) looming decision on whether to approve a Bitcoin exchange-traded fund (ETF). Market dynamics are shifting rapidly, with traders taking precautionary measures to hedge their positions, anticipating potential volatility on the horizon. What happened after the fake ETF approval? 
Over the last 24 hours, there has been a noticeable surge in the selling of short-term call option contracts. Traders view this move as a strategy to secure profits ahead of the critical January 10 deadline set by the SEC. According to data from Deribit, the put-to-call ratio for contracts expiring on January 19 has surpassed 1. That’s significantly higher than just two weeks ago. This ratio is a key indicator of market sentiment, with an uptick signaling a more bearish outlook among traders.
Excitement among traders grew as they anticipated the approval of ETFs, hoping for a rise in Bitcoin. Bitcoin’s 8% surge this year briefly stumbled, dipping from over $47k on Tuesday to around $46k, in New York. The incident was exacerbated by afalse announcement on SEC’s <a href="https://news.todayq.com/us-secs-x-account-lacked-two-factor-authentication-says-official/" rel="noopener noreferrer nofollow">compromised</a> official X (formerly Twitter) account, claiming ETF approval. 
Market participants are not taking any chances, with some traders actively buying more put options to mitigate risks associated with a negative outcome for the Bitcoin ETF. The elevated put-to-call ratio suggests a growing inclination among traders to hedge against potential losses, highlighting the significance of the SEC’s impending decision.
Chris Bae, CEO at Enhanced Digital Group, a derivative trading firm, noted, “What we have seen, and public data supports, is that an outsized amount of call selling over the last 24 hours has pushed short-dated skew negative (puts more expensive than calls) for the first time since September. This is at odds with the price action of spot making new highs overnight and thus suggests participants are looking to lock in gains ahead of ETF news.” Effects of SEC’s pending ETF decision 
The market’s bullish sentiment, driven by optimism surrounding potential ETF approval, has been evident in recent months. Traditional asset managers, including industry giant BlackRock, have been preparing for ETFs, fueling the cryptocurrency’s upward trajectory. As the SEC gets closer to deciding, traders are getting more careful. They think the news might make prices drop.
Ethan Ren, head of Options at Wintermute Asia, commented on the evolving market sentiment, “In the past few months, there has been significant buying interest in calls due to people speculating on ETF approval. Now with high market expectations of ETF approval, as seen with the rally to over 45k and six-month highs. People are hedging and reducing their positions with put buying and call selling, a reversal of the recent trend.”
As the crypto community eagerly awaits the SEC’s decision, the market’s focus is on risk mitigation. Traders are getting ready for big changes in Bitcoin. They want to be ready for anything as the important day gets closer. The next few days are poised to be crucial for Bitcoin and its investors, with the SEC’s verdict holding the key to the cryptocurrency’s short-term trajectory.
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Bitcoin Traders Brace for SEC’s ETF Decision with Hedging Surge

Todayq News

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