Bitcoin and Ether Traders Ramp Up Bets as Inflation Fades from Focus
Crypto traders are doubling down on bitcoin (BTC) and ether (ETH), showing strong confidence in the ongoing bull market as concerns over U.S. inflation take a back seat.
Bitcoin surged past $121,000 during Monday’s Asian trading session, marking a 2.7% daily gain. The leading cryptocurrency has now risen nearly 30% year-to-date and 13% this month alone, according to CoinDesk data.
Ether followed closely behind, climbing 3% to just under $3,050. Other top altcoins—including XRP, Dogecoin (DOGE), Binance Coin (BNB), and Solana (SOL)—registered gains of between 3% and 5%, reflecting broad-based strength across the crypto market.
Options activity is reinforcing the bullish tone. On decentralized platform Derive, a notable portion of open interest is centered around the $130,000 BTC call option expiring on September 26.
“Roughly 20% of BTC’s open interest for the September expiry is at the $130K call,” said Nick Forster, founder of Derive. “That suggests traders are anticipating a steady upward grind in bitcoin over the next few months.”
For ether, nearly 45% of the open interest for the July 18 expiry is concentrated at the $3,400 strike—accounting for 16% of ETH’s weekend trading volume. “It’s a clear sign traders are positioning for a breakout in ETH,” Forster added.
He noted that while volatility remains moderate compared to the wild swings of 2020-2021, market conviction is building—especially around ether. “The coming days will be important to confirm if this trend holds,” he said.
Centralized exchange Deribit is also flashing bullish signals, with call options commanding higher premiums than puts across multiple expiries for both BTC and ETH.
Inflation Data Deemed Irrelevant for Crypto Rally
The key economic event this week is Tuesday’s release of U.S. Consumer Price Index (CPI) data. Analysts expect a 0.23% month-over-month increase for June, translating to 2.6% annual inflation—up from May’s 2.4%. Core CPI, which excludes food and energy, is forecast to rise 3% year-over-year.
Traditionally, such data heavily influences Federal Reserve policy and is closely watched by both traditional and crypto investors. But this time, many in the digital asset space believe the CPI report won’t move the needle.
According to the LondonCryptoClub newsletter team, inflation is no longer the primary driver of crypto markets. Instead, they point to rising global liquidity, fiscal expansion, and a weaker U.S. dollar as the forces fueling bitcoin’s climb.
“We’re in a ‘Goldilocks’ macro environment,” they told CoinDesk. “The U.S. economy is slowing, not crashing. Inflation remains sticky but isn’t accelerating fast enough to force the Fed into hiking rates again.”
They added that the current policy environment—marked by fiscal largesse and growing deficits—is contributing to easier financial conditions.
“With the Trump administration reversing course on deficit control, we’re back to fiscal dominance—similar to what we saw under Biden,” they said.
Trump’s recently passed tax bill is expected to add more than $3 trillion to the national debt over time, further loosening the reins on liquidity.
“In this context, crypto isn’t reacting to Fed rate cuts anymore,” they said. “It’s the fiscal story, soft dollar, and expanding global money supply that are pushing risk assets higher.”
Crypto Week and Institutional Demand Add More Fuel
The bullish sentiment is also being supported by a wave of institutional adoption and regulatory developments. The Trump administration has declared this week “Crypto Week,” with the House of Representatives set to debate multiple industry-relevant bills, including the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act.
Positive movement on the legislative front could further decouple crypto from macroeconomic risks.
“The market is being driven by strong demand from corporate treasuries and continued speculation,” said Alexander Blume, CEO of SEC-registered adviser Two Prime. “With ‘Crypto Week’ now underway, we expect favorable policy headlines that will reinforce bullish sentiment.”
Blume also said bitcoin’s price action is increasingly detached from traditional macro triggers. “The market is moving independently of the broader economy,” he explained. “And with the Fed perceived as more politicized, economic data like CPI has less impact on rate expectations.”
