Crypto Traders Pile Into Bitcoin and Ether as Inflation Fears Subside and Regulatory Focus Grows
Traders are making aggressive moves in both decentralized and centralized options markets, betting heavily on bitcoin (BTC) and ether (ETH) while largely dismissing concerns that upcoming U.S. inflation data could dampen the ongoing crypto rally.
Bitcoin, the largest cryptocurrency by market capitalization, surged above $121,000 during Monday’s Asian trading session, climbing 2.7% in 24 hours. So far this year, BTC has gained nearly 30%, with a 13% increase already logged in July, according to CoinDesk figures.
Ether mirrored bitcoin’s upward momentum, rising 3% to hover near $3,050. Other major tokens—including XRP, Dogecoin (DOGE), Binance Coin (BNB), and Solana (SOL)—saw gains ranging from 3% to 5%.
Evidence of bullish sentiment is clear on the decentralized options platform Derive, where significant open interest is concentrated in bitcoin call options with a strike price of $130,000 set to expire on September 26.
“About 20% of Derive’s open interest for BTC’s September expiry sits at the $130K call, indicating traders expect steady price gains in the months ahead,” said Nick Forster, founder of Derive.
For ether, nearly 45% of the open interest in the July 18 expiry is focused on the $3,400 strike price, accounting for 16% of ETH’s weekend trading volume. “That signals traders are anticipating a potential breakout for ETH,” Forster added.
“Volatility remains more moderate than during the 2020-2021 cycle, but we’re seeing stronger directional conviction, especially around ETH. The coming week will be key to confirming this momentum,” he explained.
Similarly, centralized exchange Deribit shows a bullish bias, with call options—bets on prices rising—trading at higher premiums than puts across several expiries for both bitcoin and ether.
Inflation Data Losing Its Grip on Crypto Markets
All eyes in the macroeconomic world are on Tuesday’s release of U.S. Consumer Price Index (CPI) data. Analysts at FactSet forecast a 0.23% monthly increase in June’s CPI, translating to an annual growth rate of 2.6%, up from 2.4% in May. Core CPI, excluding volatile food and energy costs, is projected to rise 3% year-over-year.
While inflation readings have been crucial indicators for both traditional and crypto markets in recent years due to their influence on Federal Reserve policy, many in the crypto world are shrugging off this week’s report.
According to the founders of the newsletter service LondonCryptoClub, the crypto market is being driven more by broader macro trends—including expansionary fiscal policies, growing global liquidity, and a weakening U.S. dollar—than by the prospect of Fed rate cuts.
“We don’t think CPI matters much right now,” they told CoinDesk. “The U.S. economy is slowing but not crashing, and while inflation remains sticky, it’s not spiraling high enough to force the Fed back into rate hikes. Meanwhile, the weaker dollar and expanding global money supply keep financial conditions loose.”
They pointed to changes in U.S. fiscal policy under the Trump administration. “With the administration abandoning deficit reduction, we’re seeing a return to the fiscal dominance approach seen during the Biden years.”
President Trump’s newly passed tax plan is projected to add over $3 trillion to the national debt over time, adding fuel to accommodative financial conditions.
“Right now, bitcoin and broader risk assets are being driven more by the fiscal narrative and a weaker dollar than Fed rate expectations,” they said. “So the market’s sensitivity to CPI data and Fed moves has diminished.”
Crypto Week and Corporate Interest Boost Market Confidence
This week could prove pivotal for crypto regulation, as the Trump administration has dubbed it “Crypto Week.” The U.S. House of Representatives is expected to debate key legislation, including the Genius Act, Clarity Act, and the Anti-CBDC Surveillance State Act.
Positive regulatory developments could further shield crypto markets from macroeconomic headwinds.
“The bitcoin market has strong momentum right now, fueled by corporate treasury buying and speculative activity,” said Alexander Blume, CEO of SEC-registered investment adviser Two Prime, speaking to CoinDesk. “With the Trump administration calling this ‘Crypto Week,’ I’m expecting some positive developments.”
Blume added that bitcoin increasingly seems detached from broader economic trends. “There’s also a growing perception that the Fed has become politicized, which is reducing the impact that economic data like the CPI has on rate-cut expectations,” he said.
