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CoinGape 2025-01-14 15:24:47

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

The US Producer Price Index (PPI) data and the Consumer Price Index (CPI) fueling volatility in crypto market. Though the inflation rate seems tamed, traders become cautious ahead of President-elect Donald Trump’s inauguration. CPI report due Wednesday to invoke the highest market volatility since March 2023. As a result, crypto experts predict Bitcoin (BTC) to reach the crucial $100k mark. The PPI inflation rate in December comes in at 3.3%, below expectations of 3.5%. Meanwhile, the core PPI inflation rate is marked at 3.5%, lying below the expected 3.8%. Options traders anticipate the largest market movement, predicting the S&P 500 Index to move by 1% in either direction tomorrow, as per Bloomberg report . Bitcoin Eyes Surge to $100K Analyst Michael van de Poppe, in his recent X post, forecasted Bitcoin’s move past $100,000 after the US inflation data and President-elect Donald Trump’s inauguration. He wrote, “I’m expecting that we’re grinding back to $100K.” He predicted a strong bounce back while the liquidity was absorbed at a price level of $91,500. Bitcoin is exchanging hands at $96,121 at press time and has marked a notable gain of more than 5% over the last 24 hours. However, the cryptocurrency has experienced a dip of more than 6% over the past week. Coinbase Markets revealed 8 bullish signals for Bitcoin price . Reports of Trump making a pro-crypto executive order on the first day of his office has fueled a recovery in the crypto market. S&P 500 To Make Big Moves According to Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy, the S&P 500 Index is expected to move 1% in either direction on January 15, coinciding with the CPI report. Commenting on the potential market implications of the upcoming CPI report, Brent Kochuba, founder of options platform SpotGamma, noted that a better-than-expected inflation reading could swiftly propel the S&P 500 above 5,900. However, a hot reading could exacerbate the index’s decline and trigger a significant surge in the Cboe Volatility Index (VIX). Meanwhile, Peter Cardillo, chief market economist at Spartan Capital Securities in New York, revealed the unpredictability of the CPI report’s implications. Cardillo stated, “It’ll be touch and go for the next couple of days until we get the inflation news out of the way.” However, it needs to be seen if the Bitcoin price would align with the analyst’s prediction. Crypto Market Responds Positively Despite inflation fears, the crypto market is bullish today . Bitcoin and top altcoins are trading in green today, marking a significant recovery. On-chain platform Santiment earlier noted a decline in crypto trading volume as ‘trading paralysis’ has swept markets. The analysis added that top projects across Layer 1, Layer 2, meme coins, and AI saw this low level of trading back in early November. It concluded, “The lack of excitement is a sign of FUD, which increases the probability of rebounds.” Source: Santiment With a total market cap of $3.33 trillion, up 5.63%, the crypto market is rallying on an ascending track. Ethereum, XRP, and BNB have secured significant surges of 4.6%, 8.32%, and 3.94%, respectively, over the last day despite weekly dips. XRP remains a significant gainer with a daily increase of 8.32% and a weekly hike of 5.88% The post What’s Next for Bitcoin? Bloomberg Says Options Traders Bracing for Big Moves appeared first on CoinGape .

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