Bitcoin Traders Unfazed by Volatility Ahead of Inflation Report
Bitcoin traders seem remarkably calm ahead of critical economic events, despite potential volatility. The cryptocurrency has struggled to break past $80,000 in recent days. QCP Capital's analysis suggests that BTC's 18-day at-the-money implied volatility currently sits at just 37%-38%, signaling a market waiting for additional information rather than strong directional conviction.
The upcoming US inflation report and the subsequent FOMC meeting are major economic events in the next ten days. The August jobs report exceeded expectations, with the US economy adding 162,000 jobs compared to forecasts of around 55,000. Unemployment remained at 4.1% while average hourly earnings increased 0.3% MoM.
The release of the inflation data will be a major test for Bitcoin. A hotter-than-expected reading would provide the central bank more leeway for a rate hike, potentially pushing Treasury yields higher and creating additional pressure on risk assets like bitcoin. Conversely, a softer reading could reduce the pressure on policymakers to act.