Forget silver, Copper’s AI-fueled explosion exposes a “higher for longer” trap that most crypto traders are ignoring

Copper recently hit a new record high, surpassing silver and gold in significance for market liquidity, as most crypto traders remain focused on traditional safe-haven assets. Copper's climb is fundamentally driven by real-world demand, particularly from AI infrastructure buildouts, such as Amazon's deal with Rio Tinto for the Nuton/Johnson Camp project. This commodity-led inflation story directly impacts rate expectations, suggesting that inflation may remain sticky, potentially leading to a "higher for longer" interest rate scenario from the Fed. This uncertainty over the Fed's easing path—highlighted by comments from Minneapolis Fed President Neel Kashkari—pressures duration-sensitive assets like Bitcoin, as real yields are affected. While COMEX data suggests traders are maintaining long exposure, copper's sustained strength acts as a critical test of whether real economy tightness or a softer inflation track will dominate the 2026 rates narrative, a factor most crypto traders are overlooking.

(Source：CryptoSlate)