Bitcoin Price Slides Amid Rate Hike Risks and Inflation Data

Bitcoin's price has pulled back from above $80,000 to around $77,845.88, as traders become increasingly cautious ahead of key inflation data and a potential Federal Reserve rate hike.

The softening call skew in options positioning suggests that traders are shedding bullish exposure following early-week weakness, according to OrderX.

Rising oil prices, elevated bond yields, and mounting expectations of a Fed rate increase are challenging bitcoin bulls just as inflation data lands.

CME FedWatch data shows more than a 60% chance of a rate hike next week, which could strengthen the dollar and add further pressure on bitcoin's price.