Market Eyes on Inflation Data for Fed Rate Hints: Crypto Daybook

As the market awaits the latest US inflation figures, which will set the tone for the Federal Reserve's interest-rate policy, some traders are hedging their bets with short-dated bitcoin put options. Despite this, implied volatility metrics show no signs of panic, with bitcoin's 24-hour implied volatility index standing at an annualized 31%, indicating an expected price swing of just 1.6% in the next 24 hours. However, traders are advised to remain cautious as August is known to bring significant volatility in stocks, which could spill over into the crypto market. The VIX, Wall Street's fear gauge, has historically presaged a surge in volatility after a brief spike. If the CPI prints lower than expected, it could be a positive surprise to risk assets like cryptocurrencies, with ether potentially benefiting the most due to its recent lead over BTC on the back of corporate adoption.