Bitcoin and Ether traders are making bold moves as the crypto market surges, seemingly unconcerned about the upcoming U.S. inflation data. Despite the anticipation surrounding Tuesday’s Consumer Price Index (CPI) release, market participants appear to be betting that the figures will not derail the ongoing bullish momentum. Bitcoin soared to unprecedented heights, surpassing $121,000 during Monday’s Asian trading hours, marking a 2.7% increase over the past day and bringing its year-to-date gains to nearly 30%. Ether followed closely, climbing 3% to approach $3,050, with other major cryptocurrencies like XRP, Dogecoin, and Solana also enjoying gains of 3% to 5%. For more on Bitcoin’s recent performance, see our article on Bitcoin topping $111K.
Bullish Bets and Market Dynamics
Traders are actively placing their chips on the table, with the decentralized options platform Derive seeing a notable concentration of open interest in Bitcoin’s $130,000 call options set to expire on September 26. Nick Forster, Derive’s founder, noted that “almost 20% of the open interest on Derive’s Sept 26 expiry for BTC is concentrated at the $130K call, suggesting traders expect gradual but persistent price rises over the next three months.” This aligns with recent trends, as detailed in our article on Bitcoin traders chasing $130K bets. The scenario is similar for Ether, with 45% of its open interest on the July 18 expiry focused on the $3,400 strike, indicating traders’ expectations for a breakout.
Forster highlighted the growing directional conviction in Ether, stating, “While volatility remains moderate compared to 2020-21, directional conviction is growing, especially in ETH. We’re watching closely for confirmation of this trend over the coming week.” This sentiment is echoed by Deribit’s options market, where bullish bets are trading at premium prices compared to their bearish counterparts across various tenors.
Inflation: A Non-Event?
The release of June’s CPI data, historically a significant influencer of market sentiment, appears to be a mere blip on the radar for crypto enthusiasts this time around. The June CPI is projected to have increased by 0.23% month-on-month, translating to a 2.6% annualized growth, a modest uptick from May’s 2.4%. However, the crypto market seems largely indifferent.
According to the founders of the LondonCryptoClub newsletter, the primary drivers of the current bull market are fiscal profligacy, an expanding global money supply, and a softened U.S. dollar—not the Federal Reserve’s rate cuts narrative. “We don’t think it matters. We’re still in a ‘Goldilocks’ macro environment with a slowing, not collapsing US economy,” they told CoinDesk. They argue that the current fiscal dominance, spurred by the Trump administration’s recent tax legislation, is a significant factor propelling the market.
Crypto Week and the Broader Market
This week, labeled ‘Crypto Week’ by the Trump administration, might witness the House of Representatives deliberating on several crypto-related bills, including the Genius Act and the Clarity Act. Positive outcomes from these discussions could further insulate Bitcoin and the broader crypto market from macroeconomic shifts.
Alexander Blume, CEO at Two Prime, an SEC-registered investment adviser, emphasized the market’s resilience. “The bitcoin market is moving quite strongly due to demand from corporate treasuries and associated speculation,” he said. Blume downplayed the potential impact of inflation numbers, provided they remain within expected ranges. “The bitcoin market is moving independently of the broader economy,” he noted, adding that perceptions of the Federal Reserve as increasingly politicized are lessening the impact of such economic data on rate cut expectations.
As the week unfolds, all eyes will be on how these dynamics play out, particularly with the U.S. inflation data looming. The crypto market appears poised to continue its bullish trajectory, driven by factors beyond traditional economic indicators. Whether this trend persists remains to be seen, but for now, traders are seemingly unfazed by the numbers that once stirred the market waters.
Source
This article is based on: Bitcoin, Ether Traders Bet Big With Tuesday’s U.S. Inflation Data Seen as Non-Event
Further Reading
Deepen your understanding with these related articles:
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- Bitcoin soars to new all-time high above $112K as traders liquidate shorts
- $5 Billion in Bitcoin & Ethereum Options Expire Today: What Traders Should Expect
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
