coindesk.com
Crypto markets extended gains into Tuesday’s U.S. inflation print, with bitcoin 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 climbed 3.2% to above $3.16, Solana’s $SOL ($SOL) rose 5.2% to $176, dogecoin 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.