Ethereum

Core

Bitcoin

Billion

Time

The crypto market braces for the impact of crypto options expiry, CME BTC futures closure, and PPI data. Traders look for cues of market recovery as CPI inflation falls to a year low, anticipating Fed rate cuts to start in September. Let’s check details about reasons why Bitcoin price is dropping despite higher odds of a Fed rate cut in September. 
<h2 id="bitcoin-and-ethereum-options-worth-1-4-billion-to-expire">Bitcoin And Ethereum Options Worth $1.4 Billion to Expire</h2> 
Almost $1.4 billion in Bitcoin and Ethereum options expired on July 12, according to data from the largest crypto derivatives exchange Deribit. <a href="https://coingape.com/price/bitcoin" target="_blank" rel="noopener">BTC price</a> has dropped to a 24-hour low of $56,561, with not enough support from trading volumes for Bitcoin price recovery. 
Over 23,722 BTC options with a notional value of $1.36 billion expired today on Deribit. The put-call ratio was extremely high at 1.08 as put open interests are 12,328.50 against 11,393.50 call open interests, raising skepticism over recovery in the coming days. 
Moreover, the max pain was at $58,500 strike price, with put options more than call options at this strike price. Currently, the max pain point was higher than Bitcoin price of $57K. It indicates bearishness among traders continues to persist and Bitcoin remains under selling pressure. 
<figure style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" src="https://pbs.twimg.com/media/GSNGMvhWwAAdkpZ?format=jpg&amp;name=large" alt="Bitcoin options" width="783" height="392">
 <figcaption class="wp-caption-text">
 Source: Deribit
 </figcaption>
</figure> 
Historical Volatility has continued to surge while BTC Volatility Index (DVOL) shows signs of drop. Options traders continue to remain cautious amid <a href="https://coingape.com/bitcoin-selloff-intensifies-as-german-govt-offloads-2700-btc-to-exchanges/" target="_blank" rel="noopener">German government Bitcoin selloff</a>. 
Meanwhile, ETH options of a notional value of $0.48 billion are set to expire. The put-call ratio is 0.37 and the max pain price is $3,100. <a href="https://coingape.com/price/ethereum" target="_blank" rel="noopener">ETH price</a> is currently trading below the max pain point, implying that traders still have some room to recover amid the spot Ether ETF sentiment. 
<figure style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" src="https://pbs.twimg.com/media/GSNGOuaWYAA_iIz?format=jpg&amp;name=large" alt="Ethereum options" width="799" height="400">
 <figcaption class="wp-caption-text">
 Source: Deribit
 </figcaption>
</figure> 
<h2 id="ppi-inflation-data-looms">PPI Inflation Data Looms</h2> 
Producer prices index (PPI) annual inflation data in the US come in hotter 2.6%, higher than 2.2% in May. The monthly reading also came in higher at 0.2% against -0.2% last month. 
Meanwhile, Core PPI YoY for June is 3%, a 0.5% increase as compared to last month. Also, the Core PPI MoM also increased to 0.3%, higher than the previous month’s core PPI data. The latest data raised concerns among traders over the Fed rate cuts, turning them more cautious. 
Recently, <a href="https://coingape.com/us-cpi-inflation-eases-to-3-bitcoin-rally-ahead/" target="_blank" rel="noopener">US CPI</a> cooled to 3%, causing odds of Fed rate cuts to increase above 90%. Bitcoin also rebounded above $58,000 amid market optimism. However, the price has dropped amid negative sentiment. 
Also Read: <a href="https://coingape.com/crypto-market-crash-fails-to-dent-vaneck-ceo-bullish-outlook/" target="_blank" rel="noopener">Crypto Market Crash Fails To Dent VanEck CEO’s Bullish Outlook</a> 
<h2 id="bitcoin-price-falls-as-cme-futures-closes">Bitcoin Price Falls As CME Futures Closes</h2> 
Traders sold BTC futures as CME closed futures trading for the week, causing Bitcoin price to fall below $57,000. CME BTC futures trading will open on Sunday. 
The crypto market rebounded slightly this week, with volatility falling sharply to a new low since March. The quarterly delivery and large fluctuations created a perfect entry opportunity for sellers. This week, option sellers opened large number of positions, which also became a driving force to lower the IV of major maturities. 
<a rel="nofollow" href="https://www.coinglass.com/" target="_blank">Coinglass</a> data indicates CME BTC futures open interest fell over 1% in the last 24 hours. The BTC futures OI has dropped to $8.26 billion. 
<figure id="attachment_207204" aria-describedby="caption-attachment-207204" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class=" wp-image-207204" src="https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33-1224x456.jpg" alt="CME btc futures OI" width="806" height="300" srcset="https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33-1224x456.jpg 1224w, https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33-300x112.jpg 300w, https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33-768x286.jpg 768w, https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33-1536x572.jpg 1536w, https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33-150x56.jpg 150w, https://coingape.com/wp-content/uploads/2024/07/screenshot-www.coinglass.com-2024.07.12-16_33_33.jpg 1846w" sizes="(max-width: 806px) 100vw, 806px">
 <figcaption id="caption-attachment-207204" class="wp-caption-text">
 Source: Coinglass
 </figcaption>
</figure> 
Also Read: <a href="https://coingape.com/trending/bitcoin-enters-extreme-fear-zone-for-the-first-time-in-18-months-market-to-crash/" target="_blank" rel="noopener">Bitcoin Enters Extreme Fear Zone For The First Time In 18 Months: Market To Crash?</a> 
The post <a href="https://coingape.com/reasons-why-bitcoin-price-dropping-despite-fed-rate-cut-odds/">Why Is Bitcoin Price Dropping Despite Higher Odds Of Fed Rate Cut?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Why Is Bitcoin Price Dropping Despite Higher Odds Of Fed Rate Cut?

目次

Coingape News Media

2024年7月12日公開の他の記事

Bitcoin: Miners could bounce back thanks to AI

Top Airdrops for Earning Free Crypto

Michael Saylor Advocates for Bitcoin-Backed Dollar,

COCA Announces the Launch of an Ultra-Secure MPC Physical Crypto Debit Card

An EtherFi whale dumps ETHFI tokens worth over $1.8 million

Bullish Streak for US Spot Bitcoin ETFs Continues with $78.93M Net Inflow

ニュースレターを購読して暗号資産の最新情報を毎日入手！