- Both puts and calls rise on CME, pointing to volatility demand, not direction.
- Futures open interest clusters in Oct–Nov expiries, showing institutional hedging activity.
- Binance funding slips toward neutral, capping upside momentum but reducing cascade risk.
Bitcoin traders are bracing for volatility ahead of the upcoming U.S. Personal Consumption Expenditures (PCE) report. CME options data reveal an increase in both put and call positions, suggesting traders are more focused on price movement than on a clear directional bias.
Options traders have been betting on both upside and downside movements, a sign that volatility is the main driver in the market. With a substantial build-up in open interest in both calls and puts, market participants are positioning themselves for a potential breakout once the PCE data is released.
The recent shift in options market dynamics highlights the expectation of a large move, with both sides of the trade seeing strong demand. As of now, the market appears more interested in how much Bitcoin will move than in its direction.
Binance Futures Shows Mixed Sentiment
In the futures market, Binance funding rates have cooled off, with a noticeable dip in traders’ leverage. Funding rates have fallen towards neutral, indicating that the market has lost some of its prior bullish momentum.Â
However, this shift does not mean the market is bearish; instead, it reflects a cooling-off period as traders wait for the catalyst of the U.S. PCE data.
Futures open interest has remained steady, with key expiries stacking up for October and November. This timing aligns with heightened interest in hedging risk as investors position themselves for a potential market correction or rally.
What the PCE Data Means for Bitcoin
The U.S. PCE report is a key inflation indicator closely watched by markets. If the data shows hotter-than-expected inflation, it could drag Bitcoin lower, with the $107K support zone in play. Conversely, a softer print could trigger a short squeeze, potentially pushing Bitcoin past the $122K resistance zone.
Given the volatility in both CME options and Binance futures, traders are preparing for a significant price move in either direction. The PCE report could be the trigger that sets the stage for Bitcoin’s next big move, with both bulls and bears actively positioning themselves.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
