Bitcoin
Traders are demanding negative security in front of American inflation data, which is expected to show President Donald Trump’s trade tariff, starting to affect consumer prices.
12:30 UTC Report expected to show that Headline Consumer Price Index (CPI) According to Bloomberg data, the year-on-year-year-old year-to-year increased in July, with an increase of 2.7% in June.
On monthly basis, prices are estimated to increase 0.2%, a slight drop by 0.3%of July. The core CPI, which excludes the volatile food and energy component, is expected to increase 0.3% in July after an increase of 0.2% in June.
According to analysts, a warm-to-preferred CPI can reduce the fed rate cuts, potentially weighing on risk assets, including BTC.
The immediate focus of the market is on Tuesday’s US CPI print, expecting a slight increase of 2.8% in the market. The possibility of a soft reading will be likely to cut the September rate by the Federal Reserve, which is a positive for the risk property. Conversely, a hotter print may stop the rally, triggering a strategic profit-profit cross of the risky property, “Timothy Mirir, head of research in BRN, told the coindsk in an email.
Some traders are already in position for a hotter print and possible damage in BTC. According to Singapore-based QCP Capital, the precautionary flow is evident from the increase in demand for short-dated put options. A put option protects the buyer from value loss in the underlying property.
The market Insight team of QCP Capital said on Monday, “In anticipation, some traders are increasing the risk of the event, looking at the increased demand to save from a negative surprise with front-end $ 115,000- $ 118,000 BTC,” QCP Capital’s Market Insights team said on Monday. “This defensive situation sits along with a short-coal cover from topside buyers.”
Covering short call posts indicates that traders are also careful of topside risk. The BTC changed the hand at the press time at $ 118,525.
Read more: Bitcoin Traders Eye $ 135K, Ether as CPI Data Karag in Ether $ 4.8K Crosshair
