The US Consumer Price Index (CPI) is scheduled to be released in 12 hours, according to cryptocurrency writer and blogger Colin Wu. He predicts that the next Binance court trial and the anticipated CPI decline would have a significant impact on the cryptocurrency market.
He mentioned the @GreeksLive analytics Twitter handle as a source, who provided further information on the impending release of the inflation report.
CPI expected to push Bitcoin down
According to the tweet, economists anticipate a drop in the retail inflation index to 4.1%. Like the other CPI data this year, this might have a short-term impact on the price of Bitcoin, according to @GreeksLive. Inflation dropped to 5% in March of this year from 9% in March of last year across all indicators.
The expert continues by saying that the next Binance hearing is extremely concerning the cryptocurrency community since these occurrences are likely to have an impact on the whole cryptocurrency market. According to @GreeksLive, as these two significant events approach, the daily option IV’s (Implied Volatility) level has risen to 50%, up from less than a week ago when it was less than 30%. Typically, IV increases in down markets.
In addition, the next CPI will reveal whether the Fed Reserve will keep raising interest rates.
The aforementioned account also revealed that a whale who wishes to remain nameless purchased about 5,000 BTC in OTM daily call options due to his apparent long-term bullishness. This option volume makes up about 40% of the total daily volume.
Bitcoin begins to recover
The on-chain data aggregator Santiment tweeted that the “mass hysteria has settled down” following a sudden loss of over 4% on Saturday when the news circulated about the SEC bringing charges against Binance and Coinbase. The company’s analysts thus anticipate the prices in the cryptocurrency market to start returning to the prior levels until the events linked to the litigation begin to develop further.
Since its decline, the leading cryptocurrency Bitcoin has already recovered 2.71% and is currently trading at $26,202 on the Bitstamp platform.
