The post Bitcoin Santa Rally Expectations Fade as Fed Decision Looms appeared on BitcoinEthereumNews.com.

The Bitcoin Santa rally appears increasingly unlikely this year, with market sentiment shifting due to trimmed bullish options bets and cautious hedging despite a recent 30% price drop recovery above $80,000. Options traders now target modest gains to $100,000-$118,000, not a surge to new all-time highs. Santa rally expectations have diminished as call options roll down and topside bets cap below all-time highs, according to Jake Ostrovskis of Wintermute. Bitcoin has stabilized above $80,000 following a sharp 30% decline, buoyed by higher probabilities of a Federal Reserve 25 basis points rate cut. Market indicators like the 25 Delta Risk Reversal show negative sentiment at -4.8 for November and -4.9 for December, signaling ongoing hedging activity. Bitcoin Santa rally prospects fade amid cautious options trading and Fed rate cut odds. Explore if BTC can rebound to $100k or face further volatility—stay informed on key market catalysts today. What is the current outlook for the Bitcoin Santa rally? Bitcoin Santa rally expectations have significantly cooled, with traders scaling back aggressive year-end bullish bets following a 30% price plunge. According to Jake Ostrovskis, Head of OTC Trading at Wintermute, the market has priced out the once-consensus view of a strong December surge, as call options are rolling downward and targets remain below all-time highs. This shift comes as Bitcoin stabilizes above $80,000 amid elevated chances of another Federal Reserve rate cut, though short-term caution persists. How are options traders positioning for Bitcoin in November and December? Detailed analysis of options positioning reveals a tempered bullish stance. For November, top put volumes cluster at $80,000, $82,000, and $88,000, indicating traders are hedging to protect against downside risks while defending key support levels. In December, the most bullish bets from the past 24 hours aim for a rally to around $112,000, but overall activity underscores…

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Filed under: News - @ November 27, 2025 5:19 am