Bitcoin
Dealers are looking for downward protection prior to US inflation data, which is expected to show President Donald Trump’s trading tariffs begin to affect consumer prices.
The report that is due at 1 p.m. 12:30 AM UTC, is expected to show that the heading Consumer Price Index (CPI) Increased 2.8% year to year in July, up from an increase of 2.7% in June, according to Bloomberg data.
On a monthly basis, prices are expected to rise 0.2%, a slight fall from Julien’s 0.3%. Core CPI, which excludes the volatile food and energy component, is likely to have risen 0.3% in July after an increase of 0.2% in June.
According to analysts, a warmer than expected CPI could dampen cuts in the bold rate, potentially weighing risk assets, including BTC.
‘The immediate focus of the market is on Tuesday’s US CPI pressure, where the market expects a modest uptick to 2.8% yoy. A softer reading would probably cement a September rate set up by Federal Reserve, a positive for risk assets. Conversely, a warmer pressure could stop the rally and trigger tactical profit across risk assets, “Timothy Misir, head of research on children, told Coindesk in an email.
Some dealers are already placed for a warmer pressure and potential losses in BTC. According to Singapore-based QCP capital, the precautionary flow is clearly by the increase in demand for short-dated putting options. A put option protects the buyer from price loss in the underlying asset.
“In anticipation, some dealers are covering event risk, with front-end $ 115,000- $ 118,000 BTC sets an increased demand to protect against a disadvantage surprise,” QCP Capital’s market insight team said Monday. “This defensive positioning sits next to the card call on top of top buyers.”
The coverage of the short call positions indicates that dealers also remain wary of top -side risk. BTC changed hands of $ 118,525 at the press time.
Read more: Bitcoin Traders Eye $ 135K, Ether $ 4.8,000 in cross chairs, da CPI data veltes
