Svmuu reports that BIT released a chart today stating that ahead of tonight's US CPI data release, Bitcoin is hovering around the $60,000 mark, with cautious market sentiment. Investors are simultaneously digesting signs of weakness in AI-themed trading and renewed geopolitical tensions surrounding the Iran conflict. We previously highlighted inflation risks following last month’s report, and Bitcoin’s subsequent pullback suggests the market is gradually realizing that higher inflation could exert sustained pressure on the asset.
The options market further confirms this growing sense of caution. The implied volatility of put options continues to exceed that of calls, pushing the options volatility skew deep into negative territory, even surpassing levels seen during the most tense period of the Iran conflict. Bitcoin is currently facing triple risk-off pressures:
- Sticky inflation;
- Declining risk appetite for AI-related assets;
- Geopolitical uncertainty.
Tonight’s CPI data will be the first key test. However, at its core, these three major themes are highly interconnected.