Bitcoin Stalls Near $78,000 Amid Inflation Data, Options Expiry, and Nvidia Earnings
Bitcoin's price has been hovering near $78,000 after a hot Personal Consumption Expenditures (PCE) inflation reading knocked it back from an $81,000 high. The PCE print showed prices up 3.7% annually, hotter than the 3.6% forecast.
A $6.4 billion options expiry is set to occur on Friday, with max pain sitting near $78,000, below where Bitcoin currently trades. This could create a significant amount of hedging flow that could swing the market independently of any news.
Nvidia's earnings report after Wednesday's market close will also be closely watched by crypto traders, as it is seen as a bellwether for AI infrastructure spending and has moved in tandem with Bitcoin's price this year. A strong beat or confident guidance could pull more capital into risk assets broadly and extend the dip-buying that occurred on Wednesday.
Fed Chair Kevin Warsh's first keynote at Jackson Hole will also be watched closely, as it is his first major speech and markets are eager to hear how he views policy. His tone will be parsed for clues on rate expectations, with a dovish tone potentially pushing yields and the dollar lower and a hawkish tone doing the opposite.