As the cryptocurrency landscape shifts, major players including Bitcoin are closely monitoring anticipated U.S. Consumer Price Index (CPI) data. Amid this, smaller coins have experienced substantial growth, with PUMP, AVAX, and MNT rallying between 8% to 11% over the past 24 hours. Notably, Provenance Blockchain’s HASH token has emerged as the standout performer among the top 100 tokens, climbing an impressive 28%.
The Provenance Blockchain Foundation recently unveiled an innovative model designed to maintain network equilibrium by dynamically adjusting inflation rates according to prevailing conditions. This strategy aims to safeguard stakers from the dilution of their holdings, ensuring that investments maintain value over time. Additionally, this approach introduces extra rewards to align user incentives with the blockchain’s long-term success and sustainable growth, as outlined by the foundation on social media platform X.
Market optimism may escalate if the CPI data falls below expectations, which could bolster the likelihood of a Federal Reserve rate cut. Analysts at Bitunix highlighted that if CPI data proves to be dovish and drives Bitcoin above certain key levels, it might trigger a short squeeze, propelling its price into the $115,000+ liquidity zone. Conversely, a stronger-than-expected inflation reading could strengthen the U.S. Dollar Index (DXY) and postpone rate-cut anticipations, with analysts noting that $111,000 represents the initial critical support level, followed by a potential retest of the $108,500 to $109,000 liquidity zone.
In terms of derivatives, open interest (OI) in Bitcoin futures remains robust at 736,000 BTC, nearing last month’s peak of 748,000 BTC. Recently, this figure has seen little change amidst cautious trading in futures tied to altcoins ahead of the significant CPI report. Volatility in Bitcoin, as indicated by Volmex’s one-day implied volatility index, shows fluctuations within the range of 25% to 50%, with current expectations of a one-day price movement pegged at approximately 1.85%. Other cryptocurrencies such as Ethereum (ETH), Solana (SOL), and XRP also exhibit similar stability in their volatility indices.
At the Chicago Mercantile Exchange (CME), Bitcoin futures open interest continues to linger at multi-month lows, while ether options OI has surged to 260,000 ETH, marking its highest levels since August 2024. Additionally, bullish trends within options markets are apparent, with Bitcoin options OI climbing above 50,000 BTC, the highest since April.
Meanwhile, Mantle (MNT) has led a recent rally in the altcoin sector, reaching a record high of $1.62, driven by significant trading on the derivatives exchange Bybit. As a governance token for its layer-2 network, MNT is widely staked by investors looking for yield, with the annualized staking return on Coinbase standing at an impressive 71%, vastly outpacing the 1.86% return available for staking ether. This heightened staking interest has resulted in over two-thirds of MNT’s total supply being staked, leading to diminished availability on exchanges amidst rising demand.
Trading volume for Bybit has seen a notable increase, hitting $195 million over the last 24 hours—an 83% surge from the previous day. Open interest has also jumped by 20%, reflecting traders’ eagerness to establish new leveraged positions for further price gains. The robust rise in MNT’s price could catalyze additional altcoin rallies, as evidenced by the “altcoin season” index upping its score to 67 out of 100, signaling a growing preference among traders for more speculative and lower liquidity assets over established cryptocurrencies such as Bitcoin and Ethereum.
