Key Points
- Bitcoin’s price surged above $64k, up by 3% today, according to CoinMarketCap.
- The options market reacted significantly following the newly released CPI report.
Bitcoin’s price is trading above the important level of $64k, up by 3% today, according to data from CoinMarketCap.
- Zoom
- Type
Earlier today, the CPI report was released showing a drop in the US inflation to 3.4%. The inflation in the country eased in April from a year ago, which was in line with economist expectations.
Greeks.live shared a post on their X account, highlighting that the options market reacted significantly following the release of the CPI report which was well received by the markets.
Despite the fact that the results were in line with the expectations, the crypto market showed important volatility, with BTC surging by 4% to over $64k with the Maxpain point now at $62k and moving some short-term sellers into the hedging zone.
They also noted that all major term IVs pulled up quickly to new highs for the month, with the recent flat market causing major term options IV to drop to new lows at one point this year, making them extremely cost-effective for buyers with every recent driver worth buying options for.
According to Greeks.live, Ethereum, on the other hand, is slightly weaker with the ETH/BTC rate hitting another record low, and cross-currency options appearing to be an opportunity.
The just released CPI data was quite well received. Despite the results being in line with expectations, the crypto market saw significant volatility, with Bitcoin up 4% to $64,000 with the Maxpain point now at $62,000, and moving some short-term sellers into the hedging zone.… pic.twitter.com/Oa0raL6IpL
— Greeks.live (@GreeksLive) May 15, 2024
CPI report shows easing inflation to 3.4%
The CPI report reveals the following important data:
- U.S. consumer price index rises 0.3% in April, below 0.4% forecast
- Core CPI, which omits food & energy, increased 0.3% in April, matching the forecast.
- 12-month rise in CPI slows to 3.4% from 3.5% in the prior month.
- The increase in core CPI in the past 12 months slips to 3.6% from 3.8%.
❖ U.S CPI (MOM) (APR) ACTUAL: 0.3% VS 0.4% PREVIOUS; EST 0.4%
❖ U.S CPI (YOY) (APR) ACTUAL: 3.4% VS 3.5% PREVIOUS; EST 3.4%
❖ U.S CORE CPI (MOM) (APR) ACTUAL: 0.3% VS 0.4% PREVIOUS; EST 0.3%
❖ U.S CORE CPI (YOY) (APR) ACTUAL: 3.6% VS 3.8% PREVIOUS; EST 3.6%
— *Walter Bloomberg (@DeItaone) May 15, 2024
Investors have been eagerly waiting for the new data to search for clues on when and how often the Fed might cut interest rates this year.
The past three CPI releases have been surprisingly hot and caused investors to pull back expectations for interest-rate cuts.
The other day, the PPI report was out, with the index rising more than expected in April, showing a 0.5% increase for the month.
