Crypto markets extended gains into Tuesday’s U.S. inflation print, with bitcoin (BTC) holding above $118,000 after a 2.2% daily rise and ether (ETH) steady at $4,300, capping a 17.2% weekly surge that has it closing in on its $4,800 record.
Gains were broad across majors as XRP (XRP) climbed 3.2% to above $3.16, Solana’s SOL (SOL) rose 5.2% to $176, dogecoin (DOGE) rose 5.7% to 22 cents, and Binance’s BNB (BNB) added 1.2% to $800.
Lido’s staked ether mirrored ETH’s move with an 18% weekly gain. The global cryptocurrency market cap rose to $4 trillion, according to CoinGecko.
This week’s rally has flipped the usual dynamic, with altcoin strength dragging BTC higher instead of the other way around.
“This is one of the few times when a rally in major altcoins has inspired BTC to break through,” said Alex Kuptsikevich, chief market analyst at FxPro. He noted BTC has already cleared the $120,000 technical barrier, with “the bull’s nearest target now looking to be the $135,000–$138,000 area.”
ETH’s outperformance has been bolstered by pro-crypto U.S. legislation and heavy ETF inflows.
“Ethereum has gained over 21% in seven days and 45% in the last 30 days,” Kuptsikevich said, adding that the token’s on-chain activity and address growth are nearing historical highs. “We would not be surprised to see its $4,800 peak updated in the coming days.”
Macro correlations remain tight with the S&P 500 and Nasdaq are trading near records, shrugging off fresh U.S. tariffs and political drama.
The consensus for today’s CPI is a 10-basis-point uptick to 2.8% annual inflation. QCP Capital said in a client note that a softer reading “would likely lock in September rate cut expectations” — now near 100% odds after dovish Fed commentary — while a hotter print could stall the rally.
Derivatives flows show traders hedging CPI event risk, with front-end BTC puts in the $115,000 – $118,000 range seeing heavier demand, QCP said, even as short-call covering adds fuel to the upside.
BTC ETF inflows and institutional positioning will be critical in determining whether resistance at $122,000 – $124,000 breaks before the week’s end, the firm ended.
Read more: ETH Transaction Volume Climbs on Price Rally, Cheaper DeFi Costs