Analysis: US CPI data release will not lead to a surge in Bitcoin volatility

Tomorrow's US inflation report will be in focus, with investors looking for signals on the Fed's interest rate path. A series of recent unexpected events have weakened expectations of rate cuts. However, the pricing of Bitcoin options suggests that traders do not expect its volatility to rise significantly after the report is released.

OrBit Markets, an institutional liquidity provider, said: "The market is pricing in an almost negligible premium for this event," noting that the price of Bitcoin may fluctuate less than 2% after the CPI report is released, with almost no additional volatility, while S&P 500 index options pricing reflects relatively high volatility.

Markus Thielen, founder of 10x