Online Reporter
Digital assets are losing ground as traders brace for Federal Reserve Chair Jerome Powell’s closely watched address at the Jackson Hole Symposium today.
Spot Bitcoin and Ether exchange-traded funds in the US have logged four straight sessions of outflows, with investors pulling a net US$1,9 billion, according to data compiled by Bloomberg.
A broad rally in cryptocurrencies drove Bitcoin to a record on August 14, while pushing Ether to within touching distance of its own all-time high. That momentum, fed by an array of corporate crypto accumulators built in the mould of Michael Saylor’s Strategy, now appears to be dwindling.
Options activity shows traders turning defensive. The put-to-call ratio for August 22 contracts jumped to 1.33 on Deribit, the derivatives exchange, with US$3,8 billion in Bitcoin options expiring.
The largest open interest is in US$110 000 puts, signalling concern over a near-term pullback as traders seek downside protection.
Put options offer downside insurance by giving contract holders the right to sell at a certain price.
“What the put-call ratio tells you is that, given high expectations of rate cuts in September, the market is more sensitive to the risk of Powell sounding hawkish than dovish,” said Peter Chung, head of research at Presto.
“The market gyrations over the last few days are the result of investors positioning themselves for an uncertain outcome of the speech.”
Bitcoin fell 0.7 percent to US$113,624 as of 9:45 a.m. in London, extending its retreat to 9 percent from its record of US$124,514. Ether, the second-largest token, slid 1.6 percent to US$4,288.
President Donald Trump has repeatedly criticised Powell’s cautious approach to rate cuts. Treasury Secretary Scott Bessent recently said he expects Trump to announce Powell’s replacement by year-end, making Friday’s Jackson Hole address likely his last as Fed chair. — Bloomberg
