What’s Next for Bitcoin? Bloomberg Says Options Traders Bracing for Big Moves

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The data from the US Producer Price Index (PPI) and Consumer Price Index (CPI) is causing fluctuations in the cryptocurrency market. Despite the apparent control of inflation, traders are growing wary before President-elect Donald Trump’s inauguration. The upcoming CPI report on Wednesday could stir up the highest market turbulence since March 2023. Experts in the crypto field anticipate that Bitcoin (BTC) will surpass the significant $100k milestone as a result of this volatility.

In December, the PPI inflation rate was 3.3%, lower than anticipated 3.5%. Simultaneously, the forecasted core PPI inflation rate of 3.8% was also not met, as it stood at 3.5%.

According to a Bloomberg report, options traders are preparing for significant shifts in the market, with expectations that the S&P 500 Index may increase or decrease by approximately 1% tomorrow.

Bitcoin Eyes Surge to $100K

Analyst Michael van de Poppe recently stated in a post that he expects Bitcoin’s value to surpass $100,000 following the release of US inflation data and President-elect Donald Trump’s inauguration. In his own words, “I anticipate we’ll head back towards $100K.” He also suggested a significant rebound would occur as the market absorbs liquidity at around the $91,500 price point.

Currently, Bitcoin is being traded for approximately $96,121 per unit. Over the last day, it has seen an impressive increase of over 5%. Nevertheless, in the last seven days, its value has decreased by more than 6%.

According to Coinbase Markets, Bitcoin’s price could rise based on eight positive indicators. The news of President Trump potentially issuing a pro-cryptocurrency decree on his inauguration day has contributed to the resurgence in the digital currency market.

S&P 500 To Make Big Moves

As per Stuart Kaiser, who heads up US equity trading strategy at Citigroup Inc., it’s anticipated that the S&P 500 Index could increase or decrease by 1% on January 15, given the release of the CPI report.

Discussing the possible market effects of the forthcoming Consumer Price Index report, Brent Kochuba, creator of options platform SpotGamma, pointed out that if inflation figures exceed expectations, it could swiftly drive the S&P 500 above 5,900. Conversely, higher-than-anticipated inflation data may worsen the index’s downward trend and spark a considerable increase in the Cboe Volatility Index (VIX).

Currently, Peter Cardillo, an economist at Spartan Capital Securities in New York, has shared that the impact of the upcoming CPI report is hard to predict. He added that we’ll have to wait for a few days after the inflation news is released to see if the price of Bitcoin will match the analysts’ forecasts.

Crypto Market Responds Positively

Regardless of inflation concerns, the cryptocurrency market shows optimism today. Notably, Bitcoin and leading alternative coins are experiencing gains, indicating a notable recovery.

According to Santiment’s analysis, a decrease in cryptocurrency trading volume has been described as a “trading freeze” affecting various markets. The study further revealed that leading projects from Layer 1, Layer 2, meme coins, and AI experienced this low trading activity around early November. In conclusion, the analysts suggested that the absence of enthusiasm could indicate Fear, Uncertainty, and Doubt (FUD), which might lead to market recoveries.

The cryptocurrency market, currently valued at $3.33 trillion, is experiencing a surge of 5.63%. Notably, Ethereum, XRP, and BNB have shown impressive gains over the past day – Ethereum by 4.6%, XRP by 8.32%, and BNB by 3.94%. Despite a weekly decline, XRP continues to stand out with a daily growth of 8.32% and a weekly increase of 5.88%.

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2025-01-15 07:46