Bitcoin Options Market Shows Moderate Risk Aversion Before Fed Meeting

Bitcoin (BTC) options market trends indicate moderate risk aversion ahead of Federal Reserve Chair Jerome Powell's remarks on a potential June rate cut.

The Fed is expected to maintain rates at 4.25%-4.50% during Wednesday's meeting.
Demand for BTC put options is limited, reflecting cautious sentiment among traders according to Deribit CEO Luuk Strijers.
Current spot BTC price is around $94k with Deribit’s implied volatility index (DVOL) at 45.
Traders on decentralized exchange Derive.XYZ are more worried, purchasing puts at strike prices of $82K, $78K, and $76K due to concerns about the Fed's decisions.
Market expectations for a rate cut in June have decreased to a 30% chance following a strong jobs report.
Powell may address the implications of recent economic data and the ongoing trade tensions with China.
Bank of America anticipates that Powell will keep options open for a June rate cut, stressing a data-dependent approach.

Risk assets, including BTC, could face pressure if Powell dismisses the likelihood of a June cut or highlights stagflation risks.