CPI Looms Over Crypto Markets: Traders Position for Upside Breakout

The upcoming U.S. Consumer Price Index (CPI) release is on everyone's radar in crypto markets, with Bitcoin and Ethereum stuck in a tight range between $62,000 and $66,000.

Options traders are positioning for an upside breakout, with approximately $2.5 million flowing into call options with a $70,000 strike price expiring in September on Deribit. This suggests some traders expect the CPI data to be favorable for risk assets.

However, not all market participants are taking a directional stance. TDX Strategies has recommended a strangle strategy, which involves buying both a call and a put option at different strike prices. This approach profits from significant price movement in either direction, reflecting uncertainty about the CPI outcome.

On-chain data tells a different story among spot buyers. Ethereum saw more than $164.6 million flow out of exchanges over the past week, according to Nansen. This movement is often interpreted as a sign of accumulation, as investors transfer assets to private wallets, indicating a long-term holding strategy.