Bitcoin’s BTC$77,845.88 recent decline from the $80,000 mark has led traders to lessen their bullish positions, especially with U.S. inflation data set to be released today and tomorrow, which is anticipated to indicate a resurgence in inflationary pressures.
According to the AI-driven trading platform OrderX, “The call skew is gradually declining as traders reduce their bullish positions in the wake of weakness observed early this week,” as noted on X.
The options skew is an indicator that reflects the preference for call options, which represent bullish bets, compared to put options, used as a hedge against market downturns. A positive skew indicates that traders are leaning towards bullish positions.
OrderX reports a diminishing call bias as Bitcoin’s spot price retraces to $78,000 from recent peaks above $81,000. This pullback coincides with increasing oil prices, high bond yields, and rising expectations that the Federal Reserve may implement interest rate hikes.
Renewed concerns about inflation add to the challenges for bullish market participants.
The U.S. Producer Price Index (PPI), set to be published at 8:30 a.m. ET on Thursday, is forecasted to reveal a 0.4% month-over-month increase in producer-level inflation for August, following a flat reading in July. Should this come to pass, the yearly rate would elevate from 4.7% to 5.3%.