Bitcoin $115K Bets In Demand as Downside Fear Grips Market Ahead of U.S. CPI Report
A higher-than-expected CPI could dampen Fed rate cut bets and weigh on risk assets, including bitcoin.$BTC
BTC traders prepare for downside volatility. (extremis/Pixabay)
$BTC
On a monthly basis, prices are forecast to increase 0.2%, a slight decline from July's 0.3%. The core CPI, which excludes the volatile food and energy component, is likely to have risen 0.3% in July following a 0.2% rise in June.
According to analysts, a hotter-than-expected CPI could dampen Fed rate cuts, potentially weighing on risk assets, including BTC.
'The market's immediate focus is on Tuesday's U.S. CPI print, with the market expecting a modest uptick to 2.8% YoY. A softer reading would likely cement a September rate cut by the Federal Reserve, a positive for risk assets. Conversely, a hotter print could stall the rally, triggering tactical profit-taking across risk assets," Timothy Misir, head of research at BRN, told CoinDesk in an email.
"In anticipation, some traders are hedging event risk, with front-end $115,000–$118,000 BTC puts seeing increased demand to protect against a downside surprise," QCP Capital's market insights team said Monday. "This defensive positioning sits alongside short-call covering from topside buyers."
The covering of the short call positions indicates that traders also remain wary of topside risk. BTC changed hands at $118,525 at press time.
A higher-than-expected CPI could dampen Fed rate cut bets and weigh on risk assets, including bitcoin.$BTC
BTC traders prepare for downside volatility. (extremis/Pixabay)
$BTC
On a monthly basis, prices are forecast to increase 0.2%, a slight decline from July's 0.3%. The core CPI, which excludes the volatile food and energy component, is likely to have risen 0.3% in July following a 0.2% rise in June.
According to analysts, a hotter-than-expected CPI could dampen Fed rate cuts, potentially weighing on risk assets, including BTC.
'The market's immediate focus is on Tuesday's U.S. CPI print, with the market expecting a modest uptick to 2.8% YoY. A softer reading would likely cement a September rate cut by the Federal Reserve, a positive for risk assets. Conversely, a hotter print could stall the rally, triggering tactical profit-taking across risk assets," Timothy Misir, head of research at BRN, told CoinDesk in an email.
"In anticipation, some traders are hedging event risk, with front-end $115,000–$118,000 BTC puts seeing increased demand to protect against a downside surprise," QCP Capital's market insights team said Monday. "This defensive positioning sits alongside short-call covering from topside buyers."
The covering of the short call positions indicates that traders also remain wary of topside risk. BTC changed hands at $118,525 at press time.