Americas Crypto Market Update: Ether Surpasses Bitcoin Ahead of Key Inflation Report, Traders Anticipate 'Altcoin ETF Summer'

By Francisco Rodrigues (All times ET unless otherwise specified) The price of bitcoin briefly exceeded $110,000 following reports of progress in US-China trade talks, only to drop back and remain relatively unchanged over the past 24 hours. Meanwhile, the CoinDesk 20 index rose by 2%, indicating a shift towards alternative cryptocurrencies. The tentative nature of the agreement, which still requires approval from Presidents Donald Trump and Xi Jinping, may be contributing to the subdued performance of bitcoin and the preference for altcoins. Traditional markets also saw mixed reactions, with Asian equities rising by 0.8%, European stock indexes gaining less than 0.2%, and US index futures pointing downwards. According to Deutsche Bank strategist Jim Reid, 'the market has grown accustomed to this uncertainty, given the numerous twists and turns that have occurred.' In anticipation of the US Consumer Price Index report, investors are preparing for a potential increase in inflation data. The report is expected to show a 0.3% rise in core inflation for May, with annual core inflation increasing to 2.9%. Producer price data, scheduled for release tomorrow, is also forecast to climb. Ether has been exhibiting quieter yet potentially more significant strength among alternative cryptocurrencies. Options markets suggest that traders are positioning for potential upside, with front-end volatility spiking and call options gaining favor, as noted by analysts at hedge fund QCP Capital. The $450 million in ether ETF inflows recorded so far this month, combined with the expanding role of the Ethereum blockchain in tokenizing real-world assets, indicates growing investor interest. This shift is driven by the blockchain's increasing importance in infrastructure for tokenized assets. Analysts at QCP Capital noted, 'Looking ahead, macroeconomic tailwinds are aligning in favor of ETH. With the GENIUS Act advancing in the US Senate, Circle's IPO discussions resurfacing, and stablecoins gaining regulatory traction, Ethereum's native role in tokenization and settlement rails may be poised for significant structural upside.' However, the CPI report is likely to dominate market conversations. A higher-than-expected reading could reinforce concerns about inflation persistence, reducing the likelihood of a Fed interest-rate cut and potentially prompting a renewed demand for hedges like gold. If the data comes in cooler than expected, it could create an opportunity for risk assets, including cryptocurrencies, to extend their gains. Stay alert for market developments. Key Events to Watch Token Events Conferences The CoinDesk Policy & Regulation conference, a one-day boutique event in Washington on September 10, brings together general counsels, compliance officers, and regulatory executives to meet with public officials responsible for crypto legislation and regulatory oversight. Token Talk By Oliver Knight Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether