QCP: The crypto market rebounded strongly over the weekend, with the market focusing on this week's CPI data and institutional demand

Mars Finance News: On August 11, QCP released its daily market observation, stating, "During the low-liquidity weekend period, the crypto market staged a strong rebound, with Bitcoin breaking through $122,000 and approaching its historical high, fully recovering last week's losses. Ethereum performed impressively, rising 21% over the past seven days and breaking through $4,300 for the first time, reaching a new high since 2021. Since mid-July, Bitcoin's correlation with the stock market has significantly increased, so today's crypto market outperformance aligns with the overall trend of rising risk appetite. The US stock market rebounded after a brief pullback following last week's employment data, approaching historical highs and almost ignoring the impact of new tariffs and macroeconomic uncertainties. Under strong bullish momentum, the market's short-term focus shifts to the US Consumer Price Index (CPI) to be released on Tuesday. The market generally expects the annual inflation rate to rise by 10 basis points to 2.8%. If the data is lower than expected, it may further consolidate market expectations of a Fed rate cut in September, especially after several Fed officials recently turned dovish, making a rate cut almost a certainty. Whether this can drive crypto assets to new highs remains to be seen. Conversely, if the CPI data is higher than expected, the rally may pause, and the crypto market may also cool down along with the broader market. As a result, some traders are beginning to hedge event risks, with increased demand for Bitcoin put options in the front-end range of $115,000 to $118,000 to prevent unexpected drops. Such defensive operations coexist with top-up buying of call options. The front-end volatility is expected to remain high before the data release, and may narrow if Bitcoin fails to effectively break through resistance. As Bitcoin approaches its historical high, institutional demand and spot ETF capital inflows will become the focus of attention. Prices are in a critical resistance zone, and partial profit-taking may occur before the CPI release. However, the market has successfully digested 'whale' selling pressure without losing momentum, further supporting our structurally bullish view."