$57 Billion in Bitcoin and Ethereum Options Indicates Potential Market Volatility
The cryptocurrency market has rebounded ahead of the US Consumer Price Index (CPI) release. Key points include:
- Bitcoin surpassed $122,000 and Ethereum rose nearly 20% to over $4,300.
- Total market capitalization for digital assets exceeded $4.1 trillion.
- The CPI report is anticipated to show a year-over-year increase of 10 basis points, reaching 2.8%.
- A softer CPI reading could support expectations for a Federal Reserve rate cut in September; a higher figure may disrupt cryptocurrency rallies.
Market positioning indicates traders are hedging against potential downside while remaining open to upward momentum. Options market activity shows:
- Demand for short-dated Bitcoin puts in the $115,000–$118,000 range.
- Aggregated Bitcoin options open interest at $43 billion, nearing July's peak of $49 billion.
- Ethereum options open interest at $13.9 billion, approaching its all-time high of $14.6 billion.
Institutional flows also remain strong, with $571 million in net inflows into digital asset investment products last week, driven by Bitcoin and Ethereum gains. Analysts note resilience against large-scale sales from long-term holders.
Despite short-term uncertainty, some analysts maintain bullish forecasts, with estimates for Bitcoin at $150,000 by year-end based on historical trends post-halving.
