Traders Brace for Bitcoin Price Drops Ahead of SEC Spot ETF Decision
• Traders are seeking protection from potential bitcoin price drops ahead of the SEC decision on spot BTC ETFs • Put options are overbought while calls are being sold on Deribit, indicating expectations for weakness • The bitcoin options skew has turned negative, signaling increased demand to hedge downside risk • Some traders likely expect a "sell the fact" move after the anticipated ETF approvals • Deribit's forward-looking BTC volatility index has dropped 10 points since Monday