Copper prices just hit a new all-time high this week, and while most crypto traders are still watching gold and silver, copper’s rise might actually change how markets view interest rates and liquidity. As of January 14, copper reached around $6.06 per pound — the highest it’s ever been.

This surge wasn’t just a one-day spike. Futures activity shows continued movement, suggesting deeper trends at play. According to a January 15 COMEX report, trading volume dipped slightly to 74,332 contracts from 83,265, but open interest — which measures how many contracts are still active — actually went up by 3,588 to a total of 269,825. This shows traders are staying in their positions rather than reacting to short-term price moves.

Even though crypto markets don’t directly trade copper, its strong performance is feeding into a broader market mindset where everything — from metals to digital assets — is going up. Gold and silver are getting attention as traditional safe havens, but copper is different. It’s more tied to real-world demand, like construction and technology infrastructure. That means rising copper prices could be a sign that inflation isn’t going away anytime soon.

This matters for crypto because if inflation stays high, the U.S. Federal Reserve may keep interest rates elevated longer than expected. Higher rates usually reduce liquidity in financial markets, which can hurt assets like Bitcoin (BTC) and Ethereum (ETH) that tend to benefit from easier monetary policy.

Federal Reserve officials are still unsure about where inflation is heading. Minneapolis Fed President Neel Kashkari recently said inflation might be around 2.5% by the end of 2026 but admitted he wasn’t certain. That uncertainty is making it harder for markets to predict when the Fed might start cutting interest rates again.

Earlier this year, most people assumed rate cuts would come in 2026. But now, even top economists like J.P. Morgan’s Michael Feroli are saying they don’t expect any cuts this year at all.

Part of copper’s rally is also linked to growing demand from tech companies building out artificial intelligence infrastructure. The Wall Street Journal reported that Amazon signed a two-year deal with mining company Rio Tinto for copper from its Nuton/Johnson Camp project. With data centers booming and copper supplies tight, prices are being pushed even higher.

For crypto investors, the key takeaway isn’t that copper is the new hedge — it’s that rising commodity prices like copper could signal more inflation ahead. If that’s true, interest rates might stay high longer, making it tougher for riskier assets like cryptocurrencies to rally.

On the other hand, if inflation starts to cool later in 2026, the Fed could ease up on rates — which would be good news for crypto markets. But for now, everything depends on how the real economy holds up and whether supply constraints keep pushing prices higher.

Looking at COMEX trading data gives us another clue. When open interest rises while volume drops, it often means traders are holding onto their positions instead of jumping in and out. This suggests they see the current price trend as something more lasting.

Ultimately, copper’s record high is becoming a key test for what kind of economic story will dominate in 2026: one where demand and inflation stay strong — or one where things cool off enough for rate cuts and more liquidity in the system. Either way, crypto traders will be watching closely as these trends unfold across both traditional and digital markets.