Seller Exhaustion in a ‘Ghost Town’ Derivatives Market
Despite the dual shocks of the “Black Saturday” geopolitical escalation in Iran two weeks ago, combined with a disappointing United States Non-Farm Payrolls (NFP) print showing the loss of 92,000 jobs, the $60,000–$64,000 floor for bitcoin has demonstrated unexpected resilience. Oil prices moving nearly 80 percent higher since then will likely play a role in the future Consumer Price Index (CPI) readings, given that energy accounts for approximately 9 percent of the final CPI calculation. Such inflationary pressure implies there will be headwinds for all risk assets.
