Bitcoin Holds $115K As CPI Data Looms

Bitcoin steadies at $115K

In early-week trading, Bitcoin held steady near $115K after pulling back from a weekend rally. While bullish momentum had carried BTC higher on Friday and Saturday, profit-taking emerged as investors looked to secure gains ahead of the U.S. CPI release — a data point known to trigger significant volatility in digital asset markets.

Growing demand for downside hedges

Data from the options market shows a notable rise in demand for put contracts, indicating traders are preparing for potential downside moves if CPI comes in hot. Institutional players are particularly focused on contracts expiring right after the data release, underscoring short-term defensive positioning.

CPI data as a key catalyst

The upcoming U.S. CPI report is widely seen as the primary driver for Bitcoin’s next move. A higher-than-expected print could prompt the Federal Reserve to maintain or even hike interest rates, putting pressure on risk assets like crypto. Conversely, a softer reading may trigger renewed risk appetite, with BTC eyeing recent highs near $119K–$122K.

Spillover effects on broader markets

Beyond Bitcoin, altcoins and U.S. equities are likely to react strongly to the CPI print. Nasdaq and S&P 500 indices have shown high correlation with BTC during major macroeconomic events. As a result, crypto traders are also watching interest rate expectations, monetary policy signals, and U.S. dollar strength closely.

Short-term outlook

In the short term, BTC is expected to trade within the $112K–$118K range until a decisive breakout after the CPI release. Popular strategies at the moment include maintaining defensive positions or engaging in event-driven trades to capture post-data volatility.