Bitcoin Traders Retract as Inflation Concerns Mount

Bitcoin's recent pullback from $80,000 has prompted traders to reduce their bullish exposure. According to OrderX, the call bias is weakening as the spot price retracts to $78,000.

The pullback comes amid rising oil prices, elevated bond yields, and growing expectations of a Federal Reserve rate increase. Renewed inflation concerns have also made the market challenging for bulls.

U.S. PPI data due today is expected to show producer-level inflation rose 0.4% month over month in August, taking the annualized reading to 5.3%. This could further strengthen expectations of a rate hike 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.