Crypto Market Trades Sideways, Traders Wait for US CPI Report
On August 10, the crypto market traded in a narrow range as traders refrained from establishing large positions pending the release of the US inflation data. Bitcoin (BTC) encountered difficulty in gaining upward momentum, trading in the range of $64,700 to $65,300, while Ethereum (ETH) held the critical $1,900 support level.
The major cryptocurrencies exhibited a lack of upward momentum, with the exception of Solana (SOL), which climbed to a price level of $77, a price level that has not been exceeded since July 27. The purchase of various altcoins, as Solana exhibited considerable upward momentum, could reflect the purchase of altcoins in expectation of increased volatility in the market, as the US Consumer Price Index (CPI) will be released on August 12.
The Most Important Factors Affecting the Performance of Crypto Markets
US Inflation Data the Dominant Crypto Market Driver Today
The US CPI report is the most significant factor affecting the trade of crypto markets. Market participants expect that inflation will decrease, moving from 3.5% in June 2026 to 3.4% in July 2026.
Inflation expectations will tend to reflect the potential interest rate decisions of the Federal Reserve relating to the upcoming September FOMC. If inflation data come in below expectations, the market will expect that the Federal Reserve will keep interest rates on hold, and the risks associated with the crypto markets may decline.
According to prediction market data, only 36% of investors believe the Federal Reserve will raise interest rates in September, and with inflation decreasing, the expectation for a more aggressive monetary policy will likely fade. This would positively affect the prices of Bitcoin, Ethereum, and other crypto assets.
Improved Geopolitical Conditions Positive for Crypto Prices
Improved geopolitical conditions are also allowing cryptocurrencies to remain above their critical support levels. Bitcoin remains above $64,500, and Ethereum is above $1,900.
The latest advancements in the U.S.-Iran negotiations have reduced uncertainty in the markets. If the rest of the world’s geopolitical issues also improve, we can expect greater risk appetite, and that will most likely include investing in crypto.
Institutional Investment in Crypto is Increasing
The most important factor sustaining demand for crypto is the increasing participation of institutional clients. Professional investors are buying more of their crypto via Exchange Traded Funds (ETFs).
In the week covering August 3 to August 7, Ethereum ETFs had inflows of about $244 million, the highest weekly inflow since April 2026, and Bitcoin ETFs had inflows of about $844 million. Institutional investors are still interested in cryptocurrencies, even though prices are stuck.
Conditions in the Crypto Futures Market are Improving
The crypto derivatives market was more stable on August 10. The total amount of crypto that was liquidated fell by 37% relative to August 9, and was equal to $93 million.
The highest amount of liquidations was for Bitcoin and Ethereum, with liquidations equal to $17 million and $14 million, respectively. The largest liquidation was a Bitcoin position, valued at $1.07 million, on Binance.
Meanwhile, total cryptocurrency open interest rose by 1.05% to $114 billion, and traders appear to be repositioning. Approximate trading volume for derivatives reached $76 billion.
Bitcoin open interest funding was at 0.0077% and Ethereum funding was at 0.0057%. This expresses a slight bullish sentiment for longs.
Bitcoin Whales Build BTC Before Inflation Data Release
Despite short term market sentiment, large Bitcoin holders are more confident. According to CryptoQuant data, whale wallets that hold over 10,000 BTC bought 46,420 BTC on August 9.
Analyst Amr Taha stated this is the largest single-day whale accumulation since March 15. This is a buying signal for large employers and institutions, showing there is buyer confidence for BTC at current prices.
Smaller holders, however, are not as confident. Smaller wallets that hold 0.1 to 1 BTC sold a total of 9,700 BTC on August 9. This reflects a more cautious sentiment for small retail investors.
Bitcoin’s active addresses have also dropped to levels last seen in 2018. Network activity historically suggests that there may be a long-term accumulation opportunity when the market appears to be at a bottom.
Ethereum Price Analysis: ETH Trading in an Ascending Triangle Pattern
Ethereum shows bullish sentiment in trading patterns, despite a lack of price movement. ETH appears to be trading in an ascending triangle pattern. In this pattern, resistance is located at around $1,925.
If price breaks resistance, the upward trend for Ethereum that started August 1 is likely to continue. Current trading sentiment is more bullish with positive lines on the MACD, however, weaker trading sentiment is shown by negative histogram bars.
If Ethereum can hold above $1,925 for three days straight, it is anticipated that the price can continue to push to the psychological resistance level of $2,000.
# Solana Price Prediction: What’s Stopping the $100 Target After 2-Week High?
Solana has had one of the best upward price movements in the market and hit $77 on August 10, the highest value Solana was at since July 27.
The $100 target is well supported with bullish indicators, with Ali Charts noting the MACD golden cross formation and TD Sequential buying amongst other indicators.
A break and closure above the current $78 resistance level will push $100 to the next target.
Crypto Market Outlook in Anticipatation of US Inflation
With traders waiting on the August 12 US CPI report, the market remains reserved. Currently, Bitcoin and Ethereum are holding key support levels, and Solana continues its strong momentum lead in the altcoin market.
A soft inflation report means ease of a tightening policy by the Federal Reserve among other things, which will positively impact the crypto market and its movement. In the meantime, the long term players are confident and optimistic given institutional ETF movement and whale accumulation, while the market remains uncertain.
