Crypto’s Wild Weekend: Will Inflation Report Make or Break the Party? 🎉💸

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So, Bitcoin and Ethereum decided to throw a weekend party, and guess what? BTC is now strutting around at $122,000, while ETH is feeling fabulous at $4,300! Traders are now on the edge of their seats, waiting for Tuesday’s U.S. CPI report. Will it be a confetti shower of new all-time highs, or just a sad little pause for breath? 🎈

CPI Data Looms As ETH Surges 21% and BTC Trades Close to All-Time Highs

The crypto market decided to have a glow-up over the weekend, reversing last week’s “whoopsie” losses and putting those all-time highs back on the table like a buffet at a wedding. Bitcoin climbed to $122,000, while ether jumped 21% in the past week to top $4,300 for the first time since 2021. Talk about a comeback! 💪

According to QCP’s Monday insights, this rebound is like that friend who always shows up at the party after a breakup-mirroring gains in U.S. equities and showing heightened correlation since mid-July. Stock indexes have bounced back from last week’s payrolls-driven dip, completely ignoring fresh tariffs and those pesky macro concerns. 🎉

Now, all eyes are on Tuesday’s U.S. CPI release, where economists expect annual inflation to tick up 10 bps to 2.8%. A softer reading could have everyone popping champagne for a September Fed rate cut, which is already priced in like a discount sale at your favorite store. But a hotter print? That could cool off the crypto party faster than a surprise visit from your in-laws. 🥴

Positioning ahead of the data is like a game of poker: demand for $115K-$118K BTC puts suggests some folks are hedging against downside surprises, while covering of short calls signals a lack of faith in a deeper pullback. Volatility is likely to stay elevated until the release, followed by potential compression unless BTC breaks decisively above resistance. It’s like waiting for the other shoe to drop, but in this case, it’s a stiletto. 👠

With spot ETF flows and institutional demand still in focus, some profit-taking is expected as BTC tests key levels. But hey, the market’s ability to absorb recent large-holder sell-offs without breaking trend is like a yoga master holding a pose-supporting 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. Mark your calendars, folks! 📅

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2025-08-11 21:08