Crypto Consolidates as Inflation Data Boost Clashes With Geopolitical Fears

Bitcoin remained near a three-week high, though escalating tensions between the U.S. and Iran limited the rally sparked by softer-than-expected inflation data earlier in the week.

Bitcoin (BTC) at $65,260 and ether (ETH) moved within a tight range during Asian and European trading hours after climbing on the back of weaker U.S. CPI figures.

While bitcoin was still up more than 3% over the past 24 hours, it slipped 0.6% since midnight UTC as concerns grew over tanker activity in the Strait of Hormuz. Earlier, it reached a three-week peak near $65,200.

Ether followed a similar trajectory, holding a 5% daily gain despite a 0.8% pullback since midnight. It touched $1,895 on Tuesday, marking its highest level since early June.

U.S. equity futures also edged higher, with Nasdaq 100 futures rising 0.53% and S&P 500 futures gaining 0.22%.

Altcoins showed mixed but notable strength, with PUMP jumping 8.5% after investors absorbed a token unlock, signaling strong underlying demand.

Derivatives positioning
Bitcoin derivatives activity remained broadly stable. Open interest ticked up slightly to $17.3 billion, though the change was not significant. The three-month annualized basis held at 3.8%, and funding rates stayed within a 0%–8% annualized range across exchanges, indicating a continued consolidation phase.

Options markets leaned more bullish, with the 24-hour call-to-put ratio improving to 66/34 from 58/42 previously. The one-week delta skew held near 15%. The at-the-money term structure remained in contango, with near-term implied volatility around 32%–33% and longer-term levels near 42.5% through mid-2027—suggesting a stable environment with a slight upside bias.

Coinglass data showed $357 million in liquidations over the past 24 hours, with shorts accounting for 81% and longs 19%. Ethereum led with $132 million in liquidations, followed by bitcoin at $118 million. Binance’s liquidation heatmap highlights $63,500 as a key support level to watch.

Token trends
CoinMarketCap’s Altcoin Season Index slipped to 46/100, reflecting the stronger performance of bitcoin and ether compared to smaller tokens.

WLFI declined about 1%, weighing slightly on the index despite overall market resilience.

Hyperliquid (HYPE) continued to show strength, gaining 4% and extending its uptrend marked by higher highs and higher lows, with a potential move toward a new record above $78.

Meanwhile, LIT—HYPE’s competitor—lost momentum after a strong run, rising just 0.5% as traders took profits near its all-time high of $2.76.

Zcash (ZEC) also stood out, surging more than 10% over the past day before stabilizing around $557.