Bitcoin and ethereum rallied sharply over the weekend, with BTC hitting $122,000 and ETH hitting $4,300. Traders now await Tuesday’s U.S. CPI report, which could determine whether the rally pushes into new all-time highs or faces a short-term pause.
Crypto Rallies Into Key Inflation Report as Markets Eye US CPI for Next Move
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CPI Data Looms As ETH Surges 21% and BTC Trades Close to All-Time Highs
The crypto market surged over the weekend, reversing last week’s losses and putting all-time highs back within reach. Bitcoin climbed to $122,000, while ether jumped 21% in the past week to top $4,300 for the first time since 2021.
According to QCP’s Monday insights, published Aug. 11, the rebound mirrors gains in US equities, with both markets showing heightened correlation since mid-July. Stock indexes have recovered from last week’s payrolls-driven dip, shrugging off fresh tariffs and lingering macro concerns.
Attention now turns to Tuesday’s U.S. CPI release, where economists expect annual inflation to tick up 10 bps to 2.8%. A softer reading could reinforce expectations for a Sept. Fed rate cut, already priced in as a near-certainty after dovish commentary from Fed officials. A hotter print, however, could cool momentum across risk assets, including crypto.
Positioning ahead of the data reflects a split view: demand for $115K–$118K BTC puts suggests hedging against downside surprises, while covering of short calls signals reduced conviction in a deeper pullback. Volatility is likely to stay elevated until the release, followed by potential compression unless BTC breaks decisively above resistance.
With spot ETF flows and institutional demand still in focus, some profit-taking is expected as BTC tests key levels. Even so, the market’s ability to absorb recent large-holder sell-offs without breaking trend supports a structurally bullish outlook heading into mid-August.
Key events this week: Aug 12 – U.S. CPI; Aug 14 – PPI, jobless claims; Aug 15 – retail sales.
