Bitcoin, Ether Traders Bet Big With Tuesday's U.S. Inflation Data Seen as Non-Event

Key Points

1. BTC rose to a record high above $121,000, marking a 2.7% gain in 24 hours and a 30% year-to-date increase, while ETH climbed 3% to near $3,050.

2. Deribit data shows significant open interest in BTC and ETH call options, indicating traders expect further price increases, with 20% of BTC open interest concentrated at the $130K call and 45% of ETH open interest at the $3,400 strike.

3. The U.S. CPI inflation data for June is expected to show a 0.23% monthly rise and 2.6% annualized growth, with core CPI likely increasing by 3%.

4. Market analysts attribute the crypto rally to fiscal profligacy, a rising global money supply, and a soft U.S. dollar rather than Fed rate cuts, with reduced sensitivity to CPI data.

5. The 'Crypto Week' declared by the Trump administration may see debates on crypto-related bills, further boosting market optimism, as corporate adoption and political developments drive demand.