Bitcoin, ether hold steady ahead of U.S. CPI data release

Bitcoin and ether traded within narrow ranges on Tuesday as investors adopted a wait-and-see stance ahead of the U.S. consumer price index (CPI) release, a key economic indicator that may shape Federal Reserve policy expectations.

Market participants have reduced leveraged positions and increased cash holdings in anticipation of the CPI data, which is scheduled for release on Wednesday. Analysts expect the report to provide clarity on inflation trends, potentially influencing the Fed’s near-term interest-rate decisions.

Traders have also diversified into stablecoins, such as USDT and USDC, as a hedge against volatility surrounding the inflation print. Open interest in bitcoin futures has declined by approximately 8% over the past 48 hours, reflecting reduced speculative activity. Ether’s implied volatility has similarly compressed, signaling limited expectations for a sharp price move.

The CPI release follows a period of subdued price action for both assets, with bitcoin hovering near $63,000 and ether around $2,800. Technical indicators suggest a lack of directional momentum, with both cryptocurrencies consolidating within recent trading ranges.

Analysts at major trading firms noted that positioning has shifted toward defensive strategies, with some reducing exposure to higher-beta assets. The market’s sensitivity to the CPI data underscores the growing correlation between digital assets and traditional macroeconomic indicators.

The U.S. Bureau of Labor Statistics will publish the July CPI figures at 8:30 a.m. ET on Wednesday, with economists forecasting a year-over-year increase of 3.3%, down from June’s 3.4% reading.