Traders Seek Downside Protection in BTC, ETH, and SOL Following Trump’s Crypto Order
U.S. President Donald Trump signed an executive order to establish a digital asset reserve, retaining seized bitcoin (https://holder.io/coins/btc/) and altcoins without new purchases, resulting in disappointment among traders. Key points include:
- The reserve acts as a stockpile, not impacting market buying pressure.
- Traders are pursuing short-dated put options for BTC, ether (https://holder.io/coins/eth/), and solana (https://holder.io/coins/sol/).
- Implied volatility skews indicate demand for puts, signaling downside fears.
- Market sentiment remains strong for XRP.
Traders anticipate insights from Friday's White House crypto summit, which may clarify the regulatory landscape surrounding digital assets. Key expectations include:
- Guidelines on securities laws.
- Structure of the digital asset reserve.
- Regulatory leniency from SEC officials.
- Legislative backing.
The U.S. nonfarm payrolls report is also significant, with expected job creation improving to 160K. A weaker report could lead to expectations of multiple Federal Reserve rate cuts this year, supporting risk assets like BTC, though concerns persist regarding inflation due to Trump's tariffs.