TL;DR:
Crypto markets finally caught a macro tailwind after softer-than-expected U.S. inflation data, but the relief rally arrived with a familiar caveat. Bitcoin surged to just above $65,000, its strongest level in three weeks, after recovering from Monday’s slide below $62,000. By press time, BTC had eased toward $64,500, while its market capitalization climbed close to $1.3 trillion and dominance held near 56.7%. The inflation print gave bulls the spark they needed, yet Middle East tensions still capped the follow-through and kept conviction cautious across desks.
The move followed several days of whiplash. Bitcoin had rebounded from a prior low near $61,600 to $64,000 over the weekend, then came under pressure again as U.S.-Iran tension around the Strait of Hormuz intensified. Tuesday’s inflation data changed the mood quickly, with BTC more than 3% higher over 24 hours even after slipping modestly since midnight UTC. U.S. equities also improved, with Nasdaq 100 futures up 0.53% and S&P 500 futures higher by 0.22%. Risk appetite returned, but not cleanly, because geopolitical uncertainty kept traders from treating the rally as a full reset.
Ether followed the same path, touching $1,895, its highest level since June 3, before hovering above $1,870. That put ETH roughly 5% higher over 24 hours, even after a small intraday pullback. Altcoins showed pockets of strength as well. PI rebounded 16% to above $0.085 after setting lows just over $0.07, while PUMP rose to $0.0166. ZEC traded above $550 after gains near 9%, with CC, LINK and HYPE also advancing. The rebound expanded beyond Bitcoin, lifting total crypto market value by more than $60 billion to $2.280 trillion.
Derivatives suggested confidence improved without turning euphoric. Bitcoin open interest ticked up to $17.3 billion, the three-month annualized basis held at 3.8%, and funding rates stayed broadly between 0% and 8%. Options shifted more bullish, with the 24-hour call/put ratio moving to 66/34, while Coinglass recorded $357 million in liquidations, led by ETH at $132 million and BTC at $118 million. The market looks calmer but still reactive, with $63,500 flagged as a key downside liquidation level if the inflation-led momentum fades and headlines from the Middle East regain control during thin sessions before U.S. trading sets direction again for the rest of the week.
