Copper prices surged to a new all-time high of approximately $6.06 per pound on Wednesday, January 14, 2026, driven by structural demand from artificial intelligence infrastructure, electric vehicles, and renewable energy projects. This rally, which has occurred alongside gains in gold and silver, is shifting market narratives around inflation and interest rates, with direct implications for cryptocurrency market liquidity.
The COMEX futures data for January 15, 2026, showed estimated volume of 74,332 contracts, down from 83,265 the prior session, while open interest rose by 3,588 to 269,825 contracts. This combination of rising open interest and falling volume suggests traders are maintaining longer-term exposure rather than engaging in short-term momentum trading.
Unlike gold and silver, which are often viewed as safe-haven assets, copper's price strength is seen as a signal of real-world industrial demand. Analysts argue this creates a "higher for longer" trap for crypto traders, where persistent commodity price pressure can feed into inflation expectations and delay anticipated Federal Reserve rate cuts. "Copper's climb could reprice inflation expectations, and crypto liquidity," the analysis notes, highlighting how the debate around persistent inflation, real rates, and the Fed's policy path shapes the outlook for Bitcoin.
Federal Reserve uncertainty adds to the complexity. Minneapolis Fed President Neel Kashkari recently stated inflation could be around 2.5% by the end of 2026 but expressed uncertainty about the timeline. Meanwhile, J.P. Morgan Chief Economist Michael Feroli has said he does not expect the Fed to make any rate cuts in 2026. This unsettled outlook for monetary policy matters for Bitcoin and other liquid tokens, which can trade as long-duration risk assets sensitive to movements in real yields.
The copper rally is fundamentally linked to AI and infrastructure buildouts. The Wall Street Journal reported that Amazon signed a two-year agreement with mining giant Rio Tinto related to the Nuton/Johnson Camp copper project, highlighting corporate procurement tied to data center demand. Investment commentator Advait Arora emphasized that copper demand is now "locked in" from non-discretionary sectors like EVs (which use four times more copper than traditional cars), power grids, and renewables, while supply remains constrained due to the 12-15 year development timelines for new mines.
For crypto markets, the immediate translation is that sustained copper strength, interpreted as robust demand amid constrained supply, could lead traders to price in a "higher for longer" interest rate scenario. This would pressure leverage and weaken demand for duration-sensitive risk assets, including cryptocurrencies. However, if disinflation resumes later in 2026, it could allow easing expectations to re-enter the market, relaxing the real-rate pressure that has been a headwind for crypto.
