Bitcoin and Ether Surge as Inflation Data Deemed Irrelevant by Traders

With renewed investor confidence and sky-high prices, Bitcoin (BTC) and Ether (ETH) continue to rally. However, traders are viewing the upcoming U.S. inflation data as a non-event in the broader crypto bull market. Bitcoin, the premier cryptocurrency, reached new all-time highs of $121K during Monday’s Asian trading hours, marking a 2.7% gain in 24 hours.

According to the data taken from CoinDesk, BTC is now nearly 30% year-to-date and has gained 13% in July alone. Ether (ETH), the second-largest cryptocurrency, also climbed over 3%, trading near $3,050, while other major altcoins like XRP, Dogecoin, BNB, and Solana’s SOL rose between 3% and 5%.

Crypto Market Gains Bullish Momentum

The bullish momentum is mirrored in options trading activity. On the decentralized platform Derive, nearly 20% of open interest for BTC options expiring on September 26 is centered at the $130,000 strike. “This concentration signals that traders are expecting gradual but steady gains over the next few months,” said Nick Forster, founder of Derive.

Ethereum traders appear equally optimistic. Around 45% of ETH open interest for July 18 is focused on the $3,400 strike, with that one strike accounting for 16% of weekend trading volume. “The conviction is growing, especially for ETH,” Forster noted, adding that traders are anticipating a breakout.

Options data from centralized exchange Deribit further confirms the sentiment, showing bullish bets (calls) trading at a premium compared to bearish ones (puts) across different expiration periods.

Tuesday’s U.S. Consumer Price Index (CPI) report, traditionally a major market mover, is being shrugged off by crypto investors. Forecasts from FactSet predict June CPI rose 0.23% month-over-month and 2.6% annually, with core inflation at 3%. While such data typically informs the Federal Reserve’s interest rate strategy, crypto market participants suggest its impact is muted this time around.

The team at LondonCryptoClub attributes the ongoing bull market to factors beyond the Fed. “We’re in a ‘Goldilocks’ macro setting—moderate growth, sticky but not rising inflation, and a soft U.S. dollar. Fiscal dominance, growing global liquidity, and corporate demand are driving bitcoin, not Fed policy,” they explained.

President Donald Trump’s newly passed tax legislation, expected to add over $3 trillion to the national debt, reinforces this narrative. “The fiscal story—not monetary policy—is leading the market. Rate cuts or not, the key drivers are already in motion,” the newsletter founders added.

Dubbed "Crypto Week" by the Trump administration, this period may prove pivotal, as Congress is expected to discuss several crypto-related bills, including the Genius Act and the Clarity Act. These regulations could make people feel even better about the market and protect digital assets from problems in the economy as a whole.

Corporate adoption is also helping things along. Alexander Blume, CEO of Two Prime, said, "Bitcoin is benefiting from demand from the treasury and growing institutional speculation. Inflation numbers will only matter if they are very surprising." Bitcoin is moving on its own, though. Bitcoin and Ether may keep going their own way, no matter what the CPI shows, because they have solid technical positions, more institutional interest, and are less affected by traditional economic data.