Bitcoin News

Story: Bitcoin Traders Brace for US Inflation Data as Market Turns Defensive

By Maheen Hernandez

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Profit-Taking and Position Closures Dominate. Market data from both perpetual futures and spot markets show that Monday’s pullback was largely…

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Options Market Signals Downside Hedging. In the options market, traders are making preparations for possible price drops.

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Why the CPI Report Matters for Bitcoin. The CPI measures the average change in prices paid by consumers for goods and services.

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Institutional Flows Show Mixed Signals. Adding to the complexity, Bitcoin exchange-traded funds (ETFs) recorded $91.

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Traders Balancing Short-Term Risk and Long-Term Optimism. While short-term caution is building, several analysts maintain a structurally bullish long-term…

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Key Levels to Watch. With Bitcoin hovering near critical resistance, traders are watching the $100,000 mark as a…

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Conclusion. Bitcoin’s recent rally has given traders room to take profits, but the upcoming U.S.

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Bitcoin traders are shifting into defensive mode as the cryptocurrency market prepares for Tuesday’s release of the U.S. Consumer Price Index (CPI) report for July.

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The world’s largest cryptocurrency enjoyed a surprise rally over the weekend, rising roughly 5%, but that momentum stalled on Monday.

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Cumulative volume delta, which measures the difference between buying and selling volume, also fell sharply, indicating net selling pressure.

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In the options market, traders are making preparations for possible price drops. Data from on-chain derivatives platform Derive shows that put options with strike prices of…

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Sean Dawson, head of research at Derive, said those puts make up nearly 40% of all open interest for contracts expiring at the end of August.

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The CPI measures the average change in prices paid by consumers for goods and services. A lower-than-expected reading could strengthen the case for the Federal Reserve to take a…

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Conversely, a higher-than-expected inflation figure could put pressure on the Fed to delay or reduce the scale of upcoming cuts.

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Singapore-based trading firm QCP warned in a Monday investor note that a hot CPI print could “stall the rally,” especially with prices already testing critical resistance levels.

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