Disregard silver; Copper’s AI-driven surge reveals a “longer high” pitfall that many crypto investors are overlooking.

Copper reached a new all-time high this week as cryptocurrency traders turned their attention to the rise in silver and gold. Nevertheless, the increase in copper could indeed alter the trajectory of the rate path that supports the market’s liquidity narrative.

The peak price for copper is now approximately $6.06 per pound as of Wednesday, Jan. 14.

Futures trading has mirrored the price movement in ways that complicate the notion of a single-session spike.

An update from COMEX on Jan. 15, 2026, indicated an estimated volume of 74,332 contracts, a decrease from 83,265.

Open interest increased to 269,825, rising by 3,588.

Market	Timestamp (ET)	Estimated volume	Open interest
COMEX copper futures	Jan. 15, 2026, 10:00 a.m.	74,332 (down from 83,265 previous session)	269,825 (up 3,630)

While the crypto markets do not price copper directly, the proximity of copper to record levels can contribute to a cross-asset “everything up” perspective.

Copper Futures pricing (Source: TradingView)

Gold and silver have experienced similar movements, but most of the focus remains on the typical “safe-haven” trades.

Copper is somewhat flying under the radar, which is significant because it reflects real-world demand rather than fear; any indication of ongoing price pressure can directly influence rate expectations and, consequently, crypto liquidity.

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Copper’s increase could readjust inflation expectations and crypto liquidity

This context sharpens the discussion regarding the persistence of inflation, the direction of real rates, and the timeline for potential Fed policy easing, all of which also influence the outlook for Bitcoin (BTC).

This conversation remains unresolved within the Fed’s own communications.

Minneapolis Fed President Neel Kashkari mentioned that inflation might be around 2.5% by the end of 2026, then added, “The question is, will it be two and a half percent by the end of the year…? I don't know.”

Rate expectations for 2026 have also become more uncertain in market commentary, which is important for bitcoin and other liquid tokens that can behave as long-duration risk when real yields fluctuate.

Earlier, rate cuts in 2026 seemed like a certainty; however, J.P. Morgan Chief Economist Michael Feroli indicated he does not foresee any cuts from the Fed this year.

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Copper’s AI-driven surge encounters Fed uncertainty

Copper’s rise intersects with a corporate procurement narrative linked to AI infrastructure developments.

The Wall Street Journal reported that Amazon has signed a two-year contract with Rio Tinto concerning the Nuton/Johnson Camp copper project.

This report contextualizes the agreement within the framework of record copper prices, supply concerns, and demand from data centers.

For crypto, the immediate implication is less about copper serving as a hedge and more about how a commodity-driven inflation narrative could change the expected course of financial conditions.

If copper’s strength is interpreted as sustained demand amidst constrained supply, traders might anticipate “higher for longer” scenarios, which could pressure leverage and diminish the appeal for duration-sensitive risk.

This can occur even if spot flows and protocol-specific catalysts complicate the relationship among large-cap tokens such as Ethereum (ETH).

If disinflation resumes into late 2026, Kashkari’s own uncertainty opens the door for easing expectations to re-enter pricing.

This could alleviate the real-rate pressures that have consistently hindered crypto.

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COMEX indicators reveal changing cross-asset positioning and risk appetite

The COMEX overview also conveys a narrower lesson for cross-asset positioning.

Rising open interest alongside declining volume can suggest that traders are maintaining exposure rather than cycling through short-term momentum.

However, open interest alone cannot distinguish new longs from new shorts without further positioning data.

Currently, copper’s record-high zone serves as a real-time test of whether “real economy” constraints or a softer inflation trajectory will dominate the 2026 rates narrative.

Traders seeking confirmation will be drawn back to the same metrics across assets: copper’s level relative to its January peak on Trading Economics and the Fed’s tolerance for inflation outcomes that may still exceed targets by year-end.

The post Forget silver, Copper’s AI-fueled explosion exposes a “higher for longer” trap that most crypto traders are ignoring appeared first on CryptoSlate.