BIT: Bitcoin Faces Triple Risk-Aversion Pressure; Today's CPI Data Will Be the First Key Test Point

Odaily Planet Daily News BIT released a chart today stating that ahead of the US CPI data release tonight, Bitcoin is hovering around $60,000 with cautious market sentiment. Investors are simultaneously digesting signs of loosening in AI-themed trading and the renewed geopolitical tensions surrounding the Iran conflict. After our report last month, we warned of inflation risks, and the subsequent pullback in Bitcoin suggests the market is gradually realizing that higher inflation could exert sustained pressure on this asset.

Options markets further confirm this growing sense of caution. The implied volatility of put options has consistently exceeded that of call options, pushing the options volatility skew deep into negative territory, even surpassing the levels seen during the most intense period of the Iran conflict. Bitcoin is currently facing a triple pressure from risk aversion:

-Sticky inflation;

-Declining risk appetite for AI-related assets;

-Geopolitical uncertainty.

Tonight's CPI data will be the first key test point. However, at the end of the day, these three underlying themes are highly interconnected.