Crypto markets were largely steady on Friday as traders waited for the latest U.S. Consumer Price Index (CPI) report, a key macro event that could determine short-term direction.
Market Snapshot
Bitcoin (BTC) briefly tested the $67,000 level before pulling back slightly.
Ethereum (ETH) traded near $1,955, posting modest gains on the day.
Overall market movement remained limited as investors avoided aggressive positioning ahead of the inflation data.
Despite the small recovery, Bitcoin remains on track for a fourth consecutive weekly decline.
Why the CPI Report Matters
The inflation report plays a critical role in shaping expectations around Federal Reserve policy.
Higher-than-expected inflation could strengthen bond yields and the U.S. dollar, putting pressure on risk assets like crypto.
Lower-than-expected inflation may revive rate-cut expectations, supporting Bitcoin and Ethereum.
For now, markets appear to be in a wait-and-see mode.
Derivatives Show Cautious Optimism
While spot prices remain relatively flat, derivatives data suggests improving sentiment.
Open Interest Reset
Open interest has declined to around $15.5 billion, indicating that excessive leverage has been flushed from the system , often considered a healthy reset.
Positive Funding Rates
Perpetual futures funding rates have turned positive, signaling renewed bullish positioning across trading venues.
Institutional Conviction Improving
The three-month annualized futures basis has risen above 3%, reflecting growing professional participation.
Options Market Signals
Call option activity has increased, but traders are still paying a premium for short-term downside protection.
Liquidations & Key Levels
Approximately $256 million in 24-hour liquidations were recorded, split between long and short positions.
A key level to monitor:
$68,800 : A breakout above this level could trigger additional upside volatility.
Conclusion
Crypto markets remain stable but cautious ahead of critical inflation data.
Leverage has been cleaned up
Sentiment is improving
Institutional activity is picking up
Short-term risk hedging remains in place
The upcoming CPI report will likely determine whether Bitcoin and Ether push higher , or face renewed pressure.