Bitcoin Traders Ditch Bullish Bets Ahead of Inflation Data
Bitcoin's recent pullback to $78,000 from its highs above $81,000 has led traders to reduce their bullish exposure. The move comes as U.S. inflation data is expected to show a re-acceleration in price pressures. According to AI-powered trading terminal OrderX, the call bias is weakening, indicating that traders are shedding bullish option positions.
The pullback is attributed to rising oil prices, elevated bond yields, and growing expectations of a Federal Reserve interest rate hike. The market is also bracing for U.S. PPI data due Thursday, which is expected to show producer-level inflation rose 0.4% month over month in August.
This could further strengthen expectations of a Fed rate increase 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.