Inflation Data Signals Moderate Pressure as Crypto Markets Display Strong Year-End Momentum

PPI Report Exceeds Forecasts, Market Adjusts Fed Rate-Cut Expectations

The US July Producer Price Index (PPI) came in at 3.3% on an annual basis, significantly outpacing the anticipated 2.5% figure. The monthly reading delivered an even larger surprise at 0.9%, compared to the expected 0.20%, with the prior month revised upward to 2.4%. This hotter-than-expected inflation data immediately rippled through futures markets, slightly dampening the likelihood of a Federal Reserve 25-basis-point rate cut in September to 92.5%, down from earlier projections, while the odds of unchanged rates settled at 7.5%.

Options Market Maintains Bullish Bias Amid Temporary Correction

Following the PPI release, cryptocurrency derivatives markets revealed resilience and sustained confidence. According to trading analytics, options trading activity on major platforms surged to $10.9 billion in a single day—marking the first instance of daily volume exceeding $10 billion. This exceptional trading volume signals robust participation among both retail and institutional participants, with implied volatility levels and skew metrics showing minimal disruption. The options market structure continues to reflect an optimistic outlook, with technical positions maintaining their bullish tilts even as spot markets experienced a modest pullback triggered by the inflation surprise.

Digital Assets Near Historical Peaks as On-Chain Metrics Strengthen

Bitcoin recently approached fresh all-time highs while Ethereum traded near its previous record levels. Real-time analytics indicate that 99% of the Bitcoin supply remains profitable at current prices—a testament to the underlying strength of the market structure. Even during July’s correction phase, this metric held firm at 95%, suggesting that long-term holders and network participants continue to anchor valuations around accumulated unrealized gains.

Ethereum’s annual yield has climbed to 73%, narrowing the performance gap with Bitcoin’s 104% annual return. The asset has shown accelerating momentum in recent weeks, attracting meaningful capital inflow and positive on-chain activity metrics. These performance indicators underscore the market’s sustained appetite for large-cap digital assets and their expected annual activity count and volume trajectories.

Treasury Bitcoin Holdings to Remain Static, US Digital Assets Framework Takes Shape

US Treasury officials announced that the government’s Bitcoin reserves, currently valued between $15 billion and $20 billion, will remain in place with no further sales planned. This policy stance provides additional certainty for the broader cryptocurrency ecosystem and signals governmental commitment to maintaining existing holdings.

Regulatory Path Forward: Solana ETF Decision Extended

The US Securities and Exchange Commission extended its review period for proposed Solana ETF applications from major asset managers until October 16. The SEC indicated that additional time would allow the committee to thoroughly evaluate the proposed rule changes and related considerations, continuing the measured regulatory approach to cryptocurrency-linked financial products.