⚡Lack of hedge: How CPI reports can drain portfolios
Case from July 16, 2025:
CPI ↗️ to 3.7% → $BTC collapsed by 7% within an hour → long traders lost $1.2 billion 9.
Correct approach:
Before CPI: 50% of the portfolio in $USDe (Ethena) → APY 12% + inflation protection 9.
Options: Buying PUT on S&P 500 24 hours before the release.
Hedge formula:
📌 Hedge size = (Asset volatility × 2) / Correlation with VIX
Example: For $ETH with 80% volatility → hedge 40% of the portfolio.