$BTC Bitcoin traders are moving cautiously ahead of today’s highly anticipated U.S. inflation report, with many betting on protective positions as market uncertainty grows.
The Consumer Price Index (CPI) — a key measure of inflation — is expected to show a year-on-year rise of 2.8% in July, slightly above June’s 2.7%. On a monthly basis, prices are forecast to rise 0.2%, while core CPI (excluding food and energy) may climb 0.3%.$BTC
Why does this matter?
A higher-than-expected CPI could weaken expectations for Federal Reserve interest rate cuts, which may put pressure on risk assets like Bitcoin. On the other hand, a softer CPI reading could boost confidence in a September rate cut, potentially lifting market sentiment.
Market Reactions So Far
Some traders are hedging against a possible drop in $BTC , with strong demand for short-term put options in the $115K–$118K range.
This defensive move is paired with “short call covering,” indicating that traders remain cautious about both downside risk and potential upside volatility.
At the time of writing, Bitcoin is trading around $118,525.
With the CPI report due later today, the crypto market could be in for some sharp moves — and traders are clearly preparing for both possibilities.