BlockBeats news, on August 15, QCP Capital posted on its official channel that the US CPI data was in line with expectations. The market now predicts a 62.5% probability of a 25 basis point rate cut, compared to 47.5% before the CPI announcement. The milder CPI data led to a short-lived and violent reaction in the stock and cryptocurrency markets.

The rebound in cryptocurrencies was short-lived, as the US transferred 10,000 BTC to Coinbase Prime and Jump sold 17,000 ETH, and the market fell accordingly. After the CPI was announced, the front-end volatility of BTC and ETH fell sharply, by about 10 volatility points. Risk reversals also fell further, with ETH and BTC falling to -8 and -6 volatility points, respectively. This suggests that the options market now expects prices to face more downward pressure due to new supply.