Bitcoin Reacts Fast to US CPI Drop, Inflation at 2021 Lows

19-Dec-2025 Crypto Economy

Bitcoin reacted with sharp volatility to the U.S. inflation data but ended without a clear direction. After the initial impact of the November CPI release, BTC is trading around $85,558, unchanged over the past 24 hours, in a context dominated by liquidity sweeps and elevated liquidations.

The Consumer Price Index surprised to the downside. Headline inflation came in at 2.7% year over year, while Core CPI printed at 2.6%, its lowest level since March 2021. The data came in well below expectations and reinforced bets on interest-rate cuts in 2026.

Bitcoin BTC

In the immediate reaction, Bitcoin jumped from the $87,000 area to a local high near $89,500, but it failed to hold the move and quickly retraced. Volatility clustered around the Wall Street open, while liquidations exceeded $630 million over 24 hours, highlighting a market that remains heavily leveraged.

The short-term picture remains fragile. While slowing inflation is supportive for risk assets, price action shows a lack of conviction. Bitcoin continues to oscillate between liquidity levels without confirming a clear trend.

Source: https://coinmarketcap.com/currencies/bitcoin/


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This information does not constitute financial advice or investment recommendation. Readers are encouraged to verify all details through official project channels before making any related decisions.

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