Cryptocurrency markets traded slightly higher on Monday morning as traders braced for a fresh week of crucial U.S. economic data shedding light on consumer prices and inflation rates. Bitcoin (BTC) and Ethereum (ETH) rallied 3%, trading at $56,000 and $2,330, respectively. Polkadot (DOT) and Solana (SOL) climbed 2%. This week, investors will be eying two U.S. inflation reports. The Consumer Price Index (CPI) for August is set for release on Wednesday, with the Producer Price Index (PPI) following on Thursday morning. These reports are expected to provide critical insights ahead of next week’s Fed meeting. Over the past 24 hours, more than 31,000 traders were liquidated, resulting in collective liquidations of $106 million, per CoinGlass data. Over $26 million in liquidations are set to occur on Binance if Bitcoin drops to $54,230. Spot Bitcoin and Ethereum ETFs Record Outflows In the spot Bitcoin exchange-traded funds (ETFs) sector, the 11 U.S.-based ETFs observed net outflows of $706 million last week. According to data from Farside Investors, BlackRock's Bitcoin iShares Exchange-Traded Fund (ETF) had zero net inflows. Fidelity's Fidelity Bitcoin Trust (FBTC) logged outflows of $405 million last week, while Bitwise's Bitwise Bitcoin Fund (BITB) faced outflows of $60 million. Grayscale's Grayscale Bitcoin Trust (GBTC) recorded continued outflows totalling $160 million. Spot Ethereum exchange-traded funds (ETFs) also posted outflows of $90.9 million last week. The majority of these outflows were attributed to Grayscale's Grayscale Ethereum Trust (ETHE). Judge Denies Coinbase's Motion On Sept. 5, a federal judge turned down Coinbase’s request to dismiss a potential class action lawsuit brought by its shareholders. The shareholders allege that the largest cryptocurrency exchange in the U.S. underestimated the chances of facing a lawsuit from the U.S. Securities and Exchange Commission (SEC). The U.S. District Judge Brian Martinotti ruled that the shareholders presented sufficient allegations that Coinbase and its senior executives misled them by painting “a favorable picture of the improbability that the SEC would file an enforcement action by repeatedly emphasizing that the crypto assets they listed were not securities.” Following the announcement, Coinbase's stock dropped by 12% on Friday. However, it rebounded by 6% on Monday to $156. Crypto Funds Record Largest Weekly Outflows Since March CoinShares reported that crypto funds managed by companies like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares recorded net outflows totaling $726 million globally last week. “We believe this negative sentiment was driven by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25 basis point (bp) interest rate cut by the US Federal Reserve,” James Butterfill, CoinShares’ head of research wrote. "However, daily outflows slowed later in the week as employment data fell short of expectations, leaving market opinions on a potential 50bp rate cut highly divided." Ethereum registered $98 million of outflows. Solana recorded the largest inflows of any asset, totaling $6.2 million. Meanwhile, U.S. stock markets rebounded on Monday, with the S&P 500, Nasdaq and Dow Jones Industrial Average rallying more than 1%.