Bitcoin and Ethereum traders are on high alert as they navigate a volatile landscape in anticipation of today’s U.S. inflation data release. Bitcoin has recently climbed above $118,000, marking a 2.2% rise, while Ethereum remains steady at $4,300 after a notable 17.2% weekly surge. These movements have traders eyeing potential new highs, with Bitcoin aiming for the $135,000-$138,000 range and Ethereum approaching its record $4,800.
Altcoin Momentum Lifts Bitcoin
In a rare twist, altcoins have been the driving force behind Bitcoin’s recent rally. XRP saw a 3.2% increase to exceed $3.16, Solana’s SOL jumped 5.2% to $176, and Dogecoin, not to be left behind, rose 5.7% to $0.22. Even Binance’s BNB added 1.2% to reach $800. Such momentum across the board has propelled the global cryptocurrency market cap to an impressive $4 trillion, according to CoinGecko.
Alex Kuptsikevich, chief market analyst at FxPro, observed that this is a unique situation. “This is one of the few times when a rally in major altcoins has inspired BTC to break through,” he remarked. Bitcoin has already surpassed the $120,000 mark, with the bulls now targeting the $135,000–$138,000 area.
Meanwhile, Ethereum’s exceptional performance has been bolstered by favorable U.S. legislation and significant ETF inflows. “Ethereum has gained over 21% in seven days and 45% in the last 30 days,” Kuptsikevich noted, pointing to the token’s on-chain activity and address growth nearing historical highs. “We would not be surprised to see its $4,800 peak updated in the coming days.”
Inflation Data: A Potential Game Changer
Today’s Consumer Price Index (CPI) report is the key focus for traders and analysts alike. The consensus is a slight 10-basis-point rise, bringing annual inflation to 2.8%. QCP Capital, in a client note, suggested that a softer reading “would likely lock in September rate cut expectations,” which are near certainty following dovish Federal Reserve signals. However, a higher-than-expected inflation number could put a damper on the rally. As highlighted in Bitcoin Price Closes in on All-Time High as Traders Await Key Inflation Data, the CPI report could significantly impact Bitcoin’s trajectory.
Derivatives markets indicate traders are hedging their bets ahead of the CPI data, with increased demand for front-end Bitcoin puts in the $115,000 – $118,000 range. This activity, combined with short-call covering, is adding fuel to the upside potential.
BTC ETF inflows and institutional positioning are crucial factors in determining whether Bitcoin can break resistance at $122,000 – $124,000 by the week’s end. Analysts are watching these metrics closely as they could provide the necessary momentum for Bitcoin to reach its next target. For more insights on how traders are positioning themselves, refer to Bitcoin Traders Watch CPI for Fed Cues: Crypto Daybook Americas.
A Broader Market Context
The cryptocurrency market’s fortunes remain intertwined with broader macroeconomic trends. The S&P 500 and Nasdaq are near record highs, seemingly unaffected by recent U.S. tariffs and ongoing political drama. This resilience in traditional markets has provided a supportive backdrop for crypto assets.
Ethereum’s transaction volume is climbing, driven by the price rally and more affordable DeFi costs, which could further support its upward trajectory. These factors illustrate the complex interplay between digital assets and traditional financial markets, underscoring the importance of staying informed in this rapidly evolving landscape.
As the day unfolds, all eyes will be on the CPI data release. Its implications could ripple through the markets, influencing not only Bitcoin and Ethereum but also the broader altcoin sphere. Whether this bullish momentum can sustain itself remains an open question, as traders weigh the risks and opportunities in this dynamic environment.
Source
This article is based on: Bitcoin Traders Eye $135K, Ether $4.8K in Crosshairs as CPI Data Looms
Further Reading
Deepen your understanding with these related articles:
- Ethereum Explodes to 2021 Peaks, Bitcoin Eyes ATH: Market Watch
- Bitcoin can liquidate $18B with 10% price gain as traders see $120K next
- Ether’s Rally Pulls Bitcoin Along: Crypto Daybook Americas
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.
