Traders bet on Bitcoin
and ether (ETH) Observers downplayed Tuesday’s U.S. inflation data as the BTC rally exploded, a potential obstacle for the Bulls.
During Asian trading hours on Monday, BTC was the main cryptocurrency in market value, growing 2.7% in 24 hours, rising to its highest level above $121,000 on a 2.7% basis. According to Coindesk, the new high will bring earnings at the beginning of the year to nearly 30%, with prices rising 13% this month alone.
Ether follows suit, rising 3% to $3,050, other major coins (such as XRP)
Dogecoin, BNB (BNB)and Solana’s Sol (Sol)Have 3% to 5% of the gains.
The activity of the leading decentralized options platform derives support bullish price action, with a large amount of open interest focused on the $130,000 call option.
“Almost 20% of BTC’s open interest due on September 26 is concentrated on a $130,000 call, indicating traders expect gradual but sustained prices to continue to rise over the next three months,” said Nick Forster, founder of Derive.
In the case of ETH, 45% of the open rights of ETH expired on July 18 are concentrated in the $3,400 strike, which accounts for 16% of the ETH Weekend batch, a claim that traders are expecting a breakthrough in the second-largest cryptocurrency.
“Although volatility remains mild compared to 2020-21, directional beliefs are growing, especially in ETH. We are paying close attention to confirm this trend for the next week,” Foster noted.
The options listed on the centralized giant deribit are similar to bullish pictures of Bitcoin and Ether, with calls or bullish bets trading at a higher price than selling for a span of tenors.
Inflation is a non-event
The main event of this week’s macro calendar is the U.S. Consumer Price Index (CPI) Inflation data Tuesday. Based on fact setJune CPI is expected to rise 0.23% this month, age is 2.6%, up 2.6% from 2.4% in May. The annual core CPI excluding volatile food and energy components is likely to grow by 3%.
Traditional and cryptocurrency market investors have been closely watching over the past four years as it has severely impacted Fed’s interest rate decisions.
But this time, the founder of London Conker Club said that this time it may not affect the crypto market. They believe that fiscal squandering, global money supply is rising, and a dollar-dollar is driving a sustained bull market, rather than the story of the Federal Reserve cutting tax rates.
“We don’t think it’s important. We’re still in the ‘Goldilocks’ macro environment, slowing down and not collapsing inflation, and inflation is still a bit tricky, and it doesn’t accelerate to the point where the Fed travel direction is from cutting speed cuts to hiking to hiking. Meanwhile, the weaker Dollar continues to promote currency-rich currencies, which is the sales of currency, which is the growth of currency.
They added that as the Trump administration completes 180 times in reducing its deficit, we will rerun the Biden-era script of fiscal domination. ”
Additionally, the big tax bill recently passed by President Donald Trump in Congress is expected to increase by $3 trillion over time.
“So risk and Bitcoin drivers are not currently dominated by expectations of the Fed’s lower tax rates, but this story of fiscal advantage, the rise in global money supply, and the soft dollar. So the sensitivity to the Fed, and by scaling, the CPI data is greatly reduced.”
Crypto Week and Company Adoption
This week, the Trump administration is known as “crypto week” and can be seen debated by the House of Representatives several crypto bills, including the Genius Act, the Clear Act and the Anti-CBDC Surveillance State Act.
Positive developments in these areas may relate to Bitcoin and the broader cryptocurrency markets to macro developments. Relentless business adoption of Bitcoin also helps.
“The bitcoin market is moving quite strongly due to demand from my corporate treasures and associated speculation. In addition, this week has been dubbed ‘crypto week’ by the Trump administration. I expect positive news to come from this. I think the inflation numbers, so long as they are somewhere in the range of normal, will have little impact on bitcoin,” Alexander Blume, CEO at the SEC-registered investment adviser Two Prime, told CoinDesk.
“First, the Bitcoin market is independent of the broader economic development. Second, with the bluntness of politicization, there is a growing perception of the Fed, and anyway, the impact of these numbers on the cuts in tax rates.”
Read more: Bitcoin is on the new all-time high of listing at $120K as U.S. inflation data looms at $120K
