BIT: Bitcoin Faces Triple Risk-Off Pressures, Tonight's CPI Data Will Be the First Key Test

Odaily Odaily reports that BIT stated in its daily chart that Bitcoin is hovering around the $60,000 level ahead of tonight's US CPI release, with market sentiment turning cautious. Investors are simultaneously digesting signs of weakness in AI-themed trading and escalating geopolitical tensions surrounding renewed conflict with Iran. We had previously warned of inflation risks following our report last month, and Bitcoin's subsequent pullback suggests the market is gradually realizing that higher inflation will exert sustained pressure on the asset.

The options market further confirms this growing sense of caution. The implied volatility of put options has remained persistently higher than that of calls, pushing the options volatility skew deep into negative territory, even exceeding levels seen during the peak of the Iran conflict. Bitcoin is currently facing a triple threat from risk-off pressures:

- Sticky inflation;

- Declining risk appetite for AI-related assets;

- Geopolitical uncertainty.

Tonight's CPI data will be the first key test. However, in the final analysis, these three major themes are highly interconnected.