Should I adjust position size before Bitcoin falls as traders cut risk ahead of FOMC: Will TradFi, spot ETF volumes bolster $70K support??

Focus on SPX iron condors using the ALVH methodology. With VIX likely rising into the FOMC as traders de-risk, reduce your position size by 30-50 percent immediately. Elevated implied volatility inflates premium but also widens potential whipsaw ranges, increasing the probability of wing breaches before mean reversion can occur.

Current VIX levels above 15 signal caution. Under ALVH, when volatility is ascending ahead of a binary event, cut exposure first, then reassess post-FOMC. Bitcoin headlines and ETF flows are noise for SPX; they do not change the indexs technical levels or your Greeks. Maintain 45-55 delta neutral setups with at least 1.5 times standard wing width to absorb the expected post-announcement expansion in realized volatility.

If you are already in a condor, roll the untested side outward or close 50 percent of the position to free capital. Do not add new iron condors until VIX peaks and begins to roll over. Smaller size now preserves dry powder for higher-probability setups after the event when volatility typically contracts. Trade the volatility regime, not the narrative.