Bitcoin Traders Increase Demand for $115K Puts Before U.S. CPI Data
Bitcoin (BTC) traders are preparing for potential price declines ahead of U.S. inflation data, expected to indicate an increase in consumer prices due to trade tariffs.
- The Consumer Price Index (CPI) is projected to rise 2.8% year-on-year for July, up from 2.7% in June.
- Monthly prices are forecasted to increase by 0.2%, down from 0.3% in July.
- The core CPI is likely to show a 0.3% increase in July after a 0.2% rise in June.
- A higher-than-expected CPI could hinder Federal Reserve rate cuts, impacting risk assets including BTC.
- Traders are hedging against potential losses by increasing demand for short-dated put options in the $115,000–$118,000 range.
- Current BTC price stands at $118,525.
Market analysts indicate that a softer CPI reading could lead to a September rate cut by the Federal Reserve, benefiting risk assets.