What Traders Are Watching for Bitcoin's Next Move
Bitcoin is trading near $78,000 after a hot inflation report briefly knocked it down from above $81,000. July PCE came in hotter than expected at 3.7% annually, while Q2 GDP showed 1.5% growth with stronger consumer spending, reinforcing higher-for-longer rate expectations and weighing on risk assets. The next 48 hours are unusually packed: a $6.4 billion Bitcoin options expiry on Deribit lands Friday near a max-pain level around $78,000, which could amplify hedging-driven volatility. Nvidia’s earnings could affect crypto sentiment through the broader AI/tech risk trade. Kevin Warsh’s first Jackson Hole speech as Fed chair will be watched for policy tone ahead of the September rate decision. Institutional demand remains a key support, with spot Bitcoin and Ethereum ETFs taking in $2.6 billion last week. Shrinking exchange supply and a recent short squeeze suggest price could move sharply on either renewed inflows or fading demand.
