Bitcoin Gets $28K ‘Plunge Protection’ With BTC Price Due New Volatility
Bitcoin traders are expecting a surge in volatility as the US Federal Reserve gears up to announce its latest interest rate decision. The world’s largest cryptocurrency has been trading in a relatively narrow range over the past few weeks, but traders are predicting that the Fed’s decision could spark a sharp move in either direction.
In anticipation of the increased volatility, some traders are positioning themselves for a potential downside move. They are doing this by buying put options, which give them the right to sell Bitcoin at a predetermined price by a certain date.
The put options with a strike price of $28,000 are particularly popular among traders. This suggests that many traders believe that Bitcoin is likely to fall below $28,000 if the Fed’s announcement is negative for the market.
However, it is important to note that the put live cryptocurrency prices market is still relatively small, and the volume of trading on $28,000 put options is not particularly high. This suggests that the majority of traders are still relatively bullish on Bitcoin in the medium to long term.
Why is Bitcoin expected to be volatile?
Bitcoin is expected to be volatile because it is a relatively new and untested asset class. It is also highly speculative, meaning that its price is driven more by investor sentiment than by underlying fundamentals.
The Fed’s interest rate decision is likely to have a significant impact on Bitcoin because it will affect the overall risk appetite of investors. If the Fed raises interest rates more aggressively than expected, this could lead to a sell-off in risky assets like Bitcoin.
On the other hand, if the Fed is more dovish than expected, this could boost risk appetite and lead to a rally in Bitcoin.
What are the implications for Bitcoin investors?
Bitcoin investors should be aware of the potential for increased volatility in the coming weeks. They should also be prepared for the possibility that Bitcoin could fall below $28,000 if the Fed’s announcement is negative for the market.
However, it is important to remember that Bitcoin has a history of recovering from sharp selloffs. Investors who are bullish on Bitcoin in the medium to long term should not be discouraged by short-term volatility.
What can Bitcoin investors do to protect themselves from volatility?
There are a few things that Bitcoin investors can do to protect themselves from volatility:
- Diversify their portfolios. Bitcoin investors should not put all of their eggs in one basket. They should diversify their portfolios by investing in other asset classes, such as stocks, bonds, and real estate.
- Use stop-loss orders. Stop-loss orders allow investors to sell their Bitcoin at a predetermined price if it falls below a certain level. This can help to limit losses in the event of a sharp sell-off.
- Hold their Bitcoin for the long term. Bitcoin is a volatile asset, but it has a track record of outperforming other asset classes in the long term. Investors who are bullish on Bitcoin in the medium to long term should not be discouraged by short-term volatility.
Bitcoin traders are expecting a surge in volatility as the US Federal Reserve gears up to announce its latest interest rate decision. Some traders are positioning themselves for a potential downside move by buying put options with a strike price of $28,000.
Bitcoin investors should be aware of the potential for increased volatility in the coming weeks. They should also be prepared for the possibility that Bitcoin could fall below $28,000 if the Fed’s announcement is negative for the market.
Bitcoin investors can protect themselves from volatility by diversifying their portfolios, using stop-loss orders, and holding their Bitcoin for the long term.
Additional tips for Bitcoin investors
- Do your own research. Before investing in crypto market today , it is important to do your own research and understand the risks involved.
- Only invest what you can afford to lose. Bitcoin is a volatile asset, and there is always the possibility of losing money. Only invest what you can afford to lose.
- Be patient. Bitcoin is a long-term investment. Investors should not expect to get rich quick.
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