BTC and ETH Traders Go All In as Inflation Data Approaches

As traders continue to bet heavily on Bitcoin (BTC) and Ether (ETH), the upcoming U.S. inflation data is viewed by many as a non-factor.

BTC and ETH participants are making significant bets through both on-chain and centralized options markets.
Anticipated inflation data is expected to indicate increased price pressures for June. However, the ongoing BTC bullish trend is ascribed to factors beyond just low inflation and high expectations of Federal Reserve rate reductions.

BTC, which leads the cryptocurrency market, saw its price climb to record highs exceeding $121,000 during trading in Asia on Monday, marking a 2.7% increase over 24 hours. Year-to-date increases for BTC have approached 30%, with a notable 13% rise within the current month, as per CoinDesk metrics.

BTC, ETH traders take bullish options bets. (TungArt7/Pixabay)

BTC and ETH are often viewed together, and Ether’s price has also surged approximately 3% close to $3,050. Other significant cryptocurrencies such as XRP, Dogecoin, BNB, and Solana have shown gains ranging from 3% to 5%.

Key insights from market analysis:

Nick Forster, founder of Derive, highlighted that a notable portion of open interest on BTC options is at the $130,000 strike price, indicating trader expectations for steady price increases over the upcoming months.
With regards to ETH, around 45% of its open interest at July 18 expiry rests on the $3,400 strike, which also correlates strongly with weekend trading volumes.

Inflation Data: Minimal Impact Expected

This week, the focus is on the U.S. consumer price index (CPI) inflation reports set for release on Tuesday. Analysts at FactSet project an increase of 0.23% for June, leading to an annualized growth of 2.6%, an uptick from May’s measure. Traditional and crypto investors have been vigilant about these figures, as they significantly sway Federal Reserve interest rate policies.

However, the founders of LondonCryptoClub predict limited impact from this week’s inflation readings on the crypto sector, attributing the ongoing bull market to fiscal expansion and structural changes in the global monetary system rather than just Fed actions.

Continued Corporate Adoption

This week has unofficially been labeled ‘Crypto Week’ by the Trump administration, with discussions anticipated in the House around several crypto-focused legislative amendments. This attention further aligns with a surge in institutional interest in Bitcoin and cryptocurrency adoption.

Conclusion

The consensus among market participants indicates that the current trends in Bitcoin engagement are likely to persist, buoyed by corporate appetite and ongoing market dynamism, less affected by prevailing inflation metrics.