Home›Crypto›Market Structure›Bitcoin traders cut bullish exposure ahead of U.S. inf…

Bitcoin traders cut bullish exposure ahead of U.S. inflation data

Ahead of PPI and CPI releases, traders are moving away from call-heavy positioning as expectations for higher rates rise, including a more than 60% chance of a Fed hike cited via CME FedWatch.

Reported · Written up by our desk · Market Structure

Bitcoin traders are dialing back bullish options exposure after the price pulled back from recent levels, with CoinDesk noting the move comes as U.S. inflation data due Thursday and Friday could shift interest rate expectations and pressure crypto. CoinDesk said bitcoin’s spot price retraced toward $78,000 from highs above $81,000 and that traders reduced bullish exposure following early-week weakness. The outlet pointed to softening call skew, a measure of the bias toward call options relative to puts, as traders appear less willing to chase upside. The newsletter also tied the crypto pullback to macro factors, including higher oil prices and elevated bond yields, alongside growing expectations that the Federal Reserve may raise rates. It cited CME FedWatch data pointing to a more than 60% chance of a rate hike.

CoinDesk highlighted the specific inflation releases in focus, with U.S. PPI scheduled for 8:30 a.m. ET on Thursday and CPI coming on Friday. It reported expectations for PPI to show producer-level inflation rose 0.4% month over month in August, lifting the annualized reading to 5.3% from 4.7%, and said Friday’s CPI is also expected to show a re-acceleration.

Latest closeBitcoin $77,087.06 ▼1.5%

More like this

Sources