Bitcoin Market Activity Suggests Looming U.S. Inflation Data May Be Non-Event

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Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

The biggest and most established global event for everything crypto, blockchain and Web3.Bitcoin's options market is pricing for negligible volatility after Wednesday's U.S. consumer inflation release.

Still, the pricing of bitcoin options – which can offer protection against swings in the asset's price – suggests traders do not foresee a volatility explosion following the release. Options offer buyers insurance against bullish or bearish price moves. A call option protects against price rallies, while a put protects from price slides. Implied volatility refers to expectations for price turbulence over a specific period.

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