The release of new inflation data prompted a brief drop in Bitcoin's price to $94K, but the market quickly recovered.
Market Reaction to Inflation Data
The inflation data, which exceeded expectations, caused a sharp decline in Bitcoin and other major cryptocurrencies. However, following a speech by US Federal Reserve Chairman Jerome Powell, who expressed a favorable stance on crypto regulations, the market quickly rebounded.
Signals of Lower Volatility
Despite short-term fluctuations, the crypto options market indicates a period of lower volatility ahead. Traders and investors expect reduced market swings in the coming weeks. Current implied volatility suggests the market is preparing for a period of relative stability.
Whale Activity and Market Sentiment
Large investors, referred to as 'whales,' have been actively selling options, influencing overall market sentiment. Together with macroeconomic factors and the strategies of major players, the market is bracing for a potential shift in volatility. Following the inflation data shock, the market has shown resilience, indicating a potential period of stability in the near term.
The cryptocurrency market continues to adapt to new economic data and macroeconomic challenges. Despite temporary declines, there is an overall expectation of stabilization.
