Bitcoin Traders Anticipate NFP Report With Hedging Activity
- Bitcoin traders are increasing hedging before the September NFP report.
- Institutional investors see volatility as buying opportunities.
- Options activity shows strong demand for downside protection.
Bitcoin traders are preparing for potential volatility ahead of the September 2025 U.S. nonfarm payrolls report, with significant hedging activity observable in institutional and derivatives markets.
The heightened hedging behavior reflects market concerns over downside risks, signaling traders’ apprehension about a strong jobs report affecting broader economic policies.
Bitcoin traders are exhibiting significant hedging activity as the U.S. September 2025 nonfarm payrolls report approaches. Institutional and derivatives markets indicate heightened downside fears and asymmetric risk positioning.
Major players such as ARK Invest have increased holdings in crypto-linked equities. There is a notable premium for short and near-dated Bitcoin puts on Deribit, indicating concern among sophisticated traders.
Bitcoin and related assets are primarily affected, with options and spot trades reacting to the risk environment surrounding the NFP data. Implied volatility for Bitcoin rose to 30% in September.
Weak job reports might boost tech stocks, while “hawkish” prints tend to pressure altcoins, leading to Bitcoin outflows. Institutional investors plan to increase allocations in response to macroeconomic volatility.
Historically, NFP report days result in Bitcoin price swings 1.7 times larger than typical trading days. Sharp corrections and attempts to find technical support have been observed in similar events.
Institutions view crypto as a hedge against inflationary risks. With 75% expecting increased crypto allocations, hedging via options remains a preferred strategy. Elevated options activity reflects concerns about potential downside shocks.
“Since the market makers are net long gamma, an increase in Bitcoin’s price will most likely be dampened by hedge selling. Similarly, price drops will also be minimized as dealers would be forced to buy to hedge their positions.” — Sean Dawson, Head of Research at Dervie
