Bitcoin options show downside convexity ahead of FOMC meeting

Bitcoin: Bitcoin is the original decentralized cryptocurrency that operates on a public blockchain network, enabling peer-to-peer transactions without intermediaries. It is widely viewed as a digital store of value and a hedge against traditional monetary systems. The news examines pricing dynamics in Bitcoin's options market, specifically the relative cost of downside protection ahead of a major central bank policy announcement. Monetary Policy Context: Market focus centers on the Federal Open Market Committee's upcoming interest rate decision and its potential implications for risk assets including Bitcoin. Options Market Dynamics: Bitcoin options positioning has shown shifts in skew around scheduled macroeconomic events, with traders reassessing the cost of downside versus upside exposure.