Bitcoin Traders Batten Down Ahead of Inflation Report

Crypto traders are taking a defensive stance ahead of the U.S. inflation report for August, which is expected to show a rise in consumer prices on September 11.

The number of call options betting on an increase in Bitcoin's price has weakened in recent days, indicating that traders are reducing their bullish exposure as they prepare for potentially higher interest rates and reduced demand for risk assets like cryptocurrencies and stocks.

Rising inflation data is expected to put pressure on the U.S. Federal Reserve to raise interest rates, which would have a negative impact on Bitcoin's price.

Markets are currently pricing in a 60% chance that the Fed will raise interest rates by 25 basis points at its next meeting on September 16.