Altcoin momentum builds with Ethereum out front after soft CPI and fresh ETF inflows

Major altcoins outpaced Bitcoin on Wednesday after a softer‑than‑expected U.S. inflation reading and continued exchange‑traded‑fund inflows rekindled risk appetite despite simmering tariff worries and uncertainty at the Federal Reserve.

The core consumer price index rose 0.2% in June, under May’s 0.1% gain but below the 0.3% economists had forecast, according to the Bureau of Labor Statistics. Crypto investors took the data as a green light. Ether jumped over 6.1% to $3,150 and Solana rose more than 4% to $166, outperforming Bitcoin’s 2% rise to trade closer to its all-time high following a dip earlier in the week, The Block’s price page shows.

The Block’s data dashboard also logged significant flows for the spot Bitcoin and spot Ethereum ETFs on Tuesday. BTC funds attracted $403 million in net inflows, led by BlackRock’s IBIT, while investors parked $193 million in ETH ETFs. Solana saw “modest but consistent” activity, pulling $3.3 million in demand, BRN lead research analyst Valentin Fournier told The Block.

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BRN’s analyst said the recent price action and ETF flows suggest a rotation into altcoins, especially Ether, as Bitcoin solidarities are hitting new peaks. New demand from corporate treasuries like SharpLink and BitMine Immersion has also positioned Ether for capital allocation, Fournier added. “Ethereum is benefitting not only from ETF flows, but also from corporate adoption, with Sharplink Gaming becoming the largest ETH treasury holders, surpassing the Ethereum Foundation,” he said. “As BTC cools after its recent highs, altcoins are catching up fast, suggesting the potential start of altseason rotation.”

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This week, SharpLink Gaming this week disclosed it holds 280,706 ETH, more than the Ethereum Foundation and the largest ETH treasury by any publicly traded company as of July 16.

Tariffs and possible Fed guard change

Investors weighed the threat of up to $100 billion in retaliatory tariffs from Europe if trade talks with Washington fail, a move analysts say could squeeze profit margins but is unlikely to derail risk markets unless implemented. The benign U.S. CPI print is also likely to have tempered concerns that U.S. and European Union tariff threats will stoke broader price pressures.

Meanwhile, Treasury Secretary Scott Bessent announced that a formal process to select a potential successor to Federal Reserve Chairman Jerome Powell has begun. Bessent’s remarks follow President Donald Trump’s continued criticism of Fed Chair Jerome Powell for keeping interest rates unchanged. Prediction venues like Polymarket put the odds of Federal Reserve Chair Jerome Powell’s early departure at roughly 22%, stirring hopes for a more dovish policy tilt.

“The inflation data validated the market’s optimism. With ETF inflows holding, altcoins catching up, and sentiment buoyed by macro rumors, we see further upside, particularly for Ethereum and other quality altcoins. Bitcoin has room to run before its cycle top, but we're letting alts lead the charge in the short term,” BRN’s Fournier wrote.