Bitcoin
Merchants are looking for downward protection before American inflation data, which should show that President Donald Trump’s commercial prices are starting to affect consumer prices.
The report, due to 12:30 pm UTC, should show that the head price index of the head (ICC) increased by 2.8% in annual shift in July, against an increase of 2.7% in June, according to Bloomberg data.
On a monthly basis, prices should increase by 0.2%, a slight drop compared to 0.3% in July. The basic IPC, which excludes the volatile food and energy component, should have increased by 0.3% in July after an increase of 0.2% in June.
According to analysts, a warmer than expected IPC could mitigate infant rate drops, potentially weighing risk assets, including BTC.
“Immediate printing of the market is Tuesday printed US CPI, the market expecting a modest increase to 2.8% in annual shift. A softer reading would probably cement a drop in September rate by the federal reserve, a positive for risk assets. Conversely, a warmer printing could block the rally, triggering a tactical profit taking through risk assets, “Coindesk Timothy Misir, research manager at BRN, in an email.
Some traders are already positioning themselves for warmer printing and potential BTC losses. According to Singapore QCP capital, the precautionary flow is obvious from the increase in the demand for short -term put options. A sale option protects the buyer against price losses in the underlying assets.
“In anticipation, some traders are risks of coverage events, with $ 115,000 at the end of $ 115,000 to $ 118,000, the BTC allows you to see increased demand to protect itself from a downward surprise,” the team of information on the QCP capital market. “This defensive positioning is located alongside the top residents of the topside.”
The cover of short appeal positions indicates that traders also remain suspicious of high -level risk. BTC changed hands at $ 118,525 at the time of the press.
Read more: Bitcoin Traders Eye $ 135,000, Ether $ 4.8,000 reticle while CPI data are looming
