Bitcoin made a brief push toward the $90,000 mark following the latest US inflation figures, but the rally lost steam as traders reassessed the outlook. The softer-than-expected Consumer Price Index (CPI) report initially boosted risk appetite, yet Bitcoin’s momentum quickly faded.
What happened
The US CPI for November showed inflation rising 2.7% year-over-year, below the expected 3.1%. This brought inflation closer to the Federal Reserve’s 2% target, sparking optimism across global markets. Bitcoin responded with a quick move toward $90,000, as fresh positions were opened in the market.
Onchain data indicated that the rally was driven by new buying rather than short covering, with open interest rising. However, analysts noted that the move appeared impulsive and liquidity-driven, rather than the start of a sustained uptrend.
As the initial excitement faded, Bitcoin settled back into a range, with traders awaiting further macroeconomic signals. The upcoming Bank of Japan interest rate decision is seen as the next major event that could impact global liquidity and, by extension, crypto markets.
Why it matters
For European investors and institutions, US inflation and monetary policy remain key drivers of global risk sentiment. Bitcoin’s reaction to US data often sets the tone for digital asset markets globally, including in the EU.
With the European Central Bank also monitoring inflation trends, the interplay between US and EU monetary policy could influence crypto market volatility in the months ahead.
Key details
- US November CPI rose 2.7% year-over-year, below forecasts.
- Bitcoin briefly approached $90,000 before pulling back.
- Onchain data shows new buying, not panic selling or capitulation.
- Market reaction was liquidity-driven and short-lived.
- Upcoming Bank of Japan decision could affect global liquidity.
- Exchange deposit spikes occurred during brief price drops.
What to watch next
Market participants are closely watching for Bitcoin to reclaim and hold above $90,000, which could signal renewed buyer confidence. Technical analysts highlight the importance of a daily close above this level for a more sustained rally.
The Bank of Japan’s upcoming policy decision may influence global risk appetite and liquidity. For EU-based traders, ongoing coordination between US, Japanese, and European central banks will remain a key factor shaping crypto market dynamics as the year ends.
