Bitcoin traders dial down bullish plays ahead of U.S. inflation data
Bitcoin traders are reducing their bullish positions as the cryptocurrency pulls back from $80,000 amid concerns over upcoming U.S. inflation data. Market analysts suggest that rising oil prices and the potential for Federal Reserve interest rate hikes are creating a challenging environment for investors.
Why it matters
Macroeconomic indicators like inflation and interest rates are currently exerting significant pressure on crypto market sentiment and price volatility.
Bitcoin’s BTC $ 77,988.26 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 via calls.
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.
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