Bitcoin Holds Above $118,000 as Ether Nears $4,800 Record
Crypto markets saw gains ahead of the U.S. inflation report, with notable price movements:
- Bitcoin (BTC) increased by 2.2% to over $118,000.
- Ethereum (ETH) remained steady at $4,300, marking a 17.2% weekly rise close to its record of $4,800.
- XRP rose 3.2% to above $3.16.
- Solana's (SOL) price climbed 5.2% to $176.
- Dogecoin (DOGE) gained 5.7% to 22 cents.
- Binance's BNB added 1.2% to $800.
Lido’s staked ether mirrored ETH's performance with an 18% increase over the week. The global cryptocurrency market cap reached $4 trillion.
This week's rally has shifted dynamics, with altcoins driving BTC higher. BTC broke through the $120,000 barrier, targeting $135,000–$138,000 next.
Ethereum's performance is supported by pro-crypto legislation in the U.S. and significant ETF inflows, yielding a 21% gain in seven days and 45% over the last month.
Macro trends align closely with the S&P 500 and Nasdaq near record levels despite recent U.S. tariffs.
The consensus for today's CPI is a 10-basis-point increase to 2.8% annual inflation. A softer reading could solidify expectations for a September rate cut, while a hotter report may hinder the current rally.
Traders are hedging against CPI event risks, with demand for BTC puts between $115,000 – $118,000 rising, while short-call covering boosts upside momentum. BTC ETF inflows and institutional positioning will be vital in determining if resistance at $122,000 – $124,000 is broken this week.