Bitcoin options traders are taking a cautious stance ahead of the December 18 Federal Reserve meeting and the largest options expiration in history, CoinDesk reports.

On December 16, Bitcoin prices broke the $107,000 mark. The following day, the price approached $107,800 and currently sits at $107,300.

Recent flows indicate slightly bearish sentiment as traders anticipate “hawkish easing” from the Fed.

The consensus forecast suggests a 25 basis point rate cut, accompanied by signals of a slowdown or pause in further policy adjustments due to high uncertainty.

This outcome could boost bond yields, strengthen the dollar, and weaken the case for investments in risk assets, the report noted.

For contracts expiring on December 20 and 27, puts are trading at a slight premium to calls; however, for options maturing by March 2025, the opposite trend is observed.

In recent weeks, traders have been actively betting on the continuation of the bullish trend, with stronger optimism seen in short-term options.

Co-founder of Syncracy Capital, Daniel Chung, recently forecasted sustained buying of Bitcoin “on dips.”

Earlier, CryptoQuant highlighted retail investors’ confidence in the further continuation of Bitcoin’s bullish trend.