Bitcoin Climbs Back Over $95K as Traders Digest New Inflation Data

Inflation data impacting Bitcoin's price will likely lead to fluctuating funding rates, creating short-term arbitrage opportunities. Traders utilizing delta-neutral strategies may observe increased volatility in the perpetual swaps market, leading to potentially higher but riskier returns. The rise in Bitcoin's price can cause an imbalance between long and short positions, affecting funding rates.

The rise in Bitcoin driven by inflation data suggests a flight to perceived safe-haven assets during economic uncertainty. Delta-neutral traders should closely monitor funding rates across different exchanges for potential arbitrage opportunities. An unexpected surge could mean highly profitable funding rate arbitrage, but also heightened risk of sudden rate reversals. Implementing tighter risk management is crucial during periods of elevated volatility. Consider using options to hedge against large price swings and protect your delta-neutral portfolio.