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Bitcoin Volatility Builds Ahead of Jerome Powell’s Jackson Hole Remarks
Bitcoin traders are on alert as all eyes turn to Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole this Friday.
Options Market Shows Mixed Sentiment
Recent data from the options market paints a mixed picture. While there’s a slight bullish tilt—reflected in a negative 25 Delta Skew—this optimism has started to fade. The skew has dropped in the past 24 hours, suggesting some traders are stepping back, possibly to limit exposure before Powell’s comments.
A negative 25 Delta Skew means call options are currently more expensive than puts, typically a sign that traders expect upward movement. But the small decline in this metric hints at growing caution.
Price Levels to Watch: $110K and $120K
Bitcoin is currently trading near $113,000, marking a nearly 5% drop over the past week, according to CoinGecko. This puts the price close to a two-week low, adding to the uncertainty ahead of Powell’s address.
Options data from Deribit shows high volume and open interest concentrated at the $110,000 and $120,000 strike levels. These are likely to act as key zones of demand and supply in the near term.
Market Positioning Ahead of Powell’s Speech
Last week’s market correction followed disappointing producer data and a rise in core inflation, which dampened hopes for a near-term rate cut. As a result, many traders are choosing to stay defensive until there’s more clarity from the Fed.
According to analyst Toledano, “Volatility positioning is likely to remain defensive through the speech, followed by either renewed direction or status quo afterwards.”
