Bitcoin Rebounds 3.1% Weekly, Ethereum Rallies 10.7% as CPI/PPI Miss Expectations; ETH Eyes $2,240

BTC-0.33%
ETH-0.87%
According to Bybit's weekly options report (July 14-20), Bitcoin rebounded to close the week up 3.1%, while Ethereum surged 10.7%, with the ETH/BTC ratio recovering significantly. The rally was driven by softer-than-expected inflation data: the U.S. June CPI fell 0.4% month-on-month (the largest single-month decline since April 2020) and declined to 3.5% year-over-year against expectations of 3.8%; PPI came in at 5.5% versus an expected 6.2%, with core PPI at 4.7% against 5.2% expected. The data triggered a sharp repricing of rate-hike expectations, with the probability of a September hike plummeting from 100% to 55%. Federal Reserve Governor Warsh signaled a dovish tilt by characterizing AI-driven price pressures as "transitory" rather than structural inflation requiring policy response, sending bond yields lower. Technically, Ethereum confirmed a W-bottom formation with a breakout and retest of the 1,788 U.S. dollar neckline, targeting 2,240 U.S. dollars.
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