Weekend liquidity is light, and the crypto market rebounds violently — Bitcoin breaks through $122,000, approaching its historical peak, while Ethereum is even stronger, rising 21% in a week, breaking $4,300 for the first time, setting a new high since 2021.

Recently, the correlation between Bitcoin and U.S. stocks has surged. After a brief pullback following last week's employment data, U.S. stocks rebounded (ignoring new tariffs and macro disturbances), and rising risk appetite directly boosted crypto. The key to watch next is Tuesday's U.S. CPI: the market expects inflation to rise to 2.8%. If the data is below expectations, the Federal Reserve's rate cut expectations for September will be stronger (after all, officials have collectively turned “hawkish to dovish”), and crypto may surge to new highs; however, if CPI exceeds expectations, the upward trend is likely to stall, and crypto will also have to adjust.

Now traders are starting to hedge risks, with a surge in demand for put options in the $115,000 - $118,000 range for Bitcoin, while some are also bottom-fishing for call options; short-term volatility will remain high.

As Bitcoin approaches its historical high, institutional demand and the flow of spot ETF funds are key.