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Bitcoin’s BTC$77,845.88 recent pullback from $80,000 has prompted traders to reduce bullish exposure, while U.S. inflation data due today and tomorrow is expected to show a re-acceleration in price pressures.
“Call skew continues to soften as traders shed bullish exposure following early-week weakness,” AI-powered trading terminal OrderX said on X.
Options skew measures the bias for calls, or bullish option positions, relative to puts, or insurance against price drops. A positive figure means traders are chasing upside
According to OrderX, the call bias is weakening. This comes as bitcoin’s spot price retraces to $78,000 from recent highs above $81,000. The pullback comes amid rising oil prices, elevated bond yields and growing expectations the Fed will raise interest rates.
Add to that renewed inflation concerns, and the market looks challenging for bulls.
U.S. PPI, scheduled for release at 8:30 a.m. ET on Thursday, is expected to show that producer-level inflation rose 0.4% month over month in August, following an unchanged reading in July. That would take the annualized reading to 5.3% from 4.7%.
Such a sharp increase could further strengthen expectations of a Federal Reserve rate increase next week, potentially lifting the dollar and putting additional pressure on bitcoin.
CME FedWatch data currently points to a more than 60% chance of a rate hike. Friday’s CPI report is also expected to show a re-acceleration in inflation. Stay alert!
What’s trending
- Crypto wins regardless of Clarity Act vote, Coinbase’s Armstrong says (CoinDesk): Coinbase CEO Brian Armstrong said the crypto industry stands to gain regulatory clarity no matter the outcome of the Senate’s Sept. 15 vote on the Clarity Act.
- Indian agri warehouse giant is putting $2 billion in grain-backed loans onchain (CoinDesk): Arya.ag, India’s largest agricultural warehousing business, is using blockchain to tokenize grain deposits, warehouse receipts and loan status, giving lenders a more reliable way to verify the crops backing agricultural loans.
- Nervy markets await ECB rate hike, U.S. inflation data (Reuters): Markets were bracing for the European Central Bank’s second rate hike of the year and key U.S. inflation data after the return of $100-a-barrel oil, causing fresh angst in global bond markets.
- Treasury yields move higher as investors await key wholesale inflation data (CNBC): With the 10-year U.S. Treasury bond yield at its highest since November 2023, investors are looking ahead to key U.S. wholesale and consumer price data, due Thursday and Friday, respectively, for insight into inflation and the Fed’s interest decision next week.
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Source: cryptonews.net