Recent Consumer Price Index (CPI) data in the U.S. exceeded expectations, causing significant market fluctuations. Bitcoin’s price fell to $94,000 but quickly recovered to $98,000, marking a 4.4% increase.
Call Options Dominate the Market
The options market has seen notable activity over the last 24 hours. Particularly, there has been an increase in call options indicating that Bitcoin's price is expected to fluctuate between $97,000 and $100,000 for contracts expiring this Friday. Short-term trading has intensified, and traders believe Bitcoin may retest the $100,000 level soon.
Focus on Powell and Trump's Stance
The unexpectedly high CPI data has postponed expectations for a Federal Reserve interest rate cut until the end of the year. This development has turned the attention of market participants to potential statements from Fed Chairman Jerome Powell and U.S. President Donald Trump. Powell is expected to continue following data-driven policies, which could mitigate sudden fluctuations in the cryptocurrency market.
Analysts Warn of Volatility
QCP Capital analysts highlight the need for caution against sudden market movements and stress the importance of risk management for investors. They noted that significant players are active in the options market, which could influence price movements.
The market remains volatile, and QCP Capital analysts anticipate ongoing volatility for Bitcoin in the short term. Market players must be prepared for such price movements.
