Bitcoin Gyrates on Shock US CPI Data as 24-hour Liquidations Hit $630M
Bitcoin displayed heightened volatility following a significant drop in US inflation revealed by November’s Consumer Price Index (CPI) data, which rose 2.7% year-on-year—below the expected 3.1%—marking the lowest Core CPI since March 2021. This led BTC/USD to momentarily exceed $89,000 before retreating, as traders responded to lower-than-expected inflation figures. The surprising inflation miss fueled rallies in risk assets including Bitcoin, while the US dollar and bond yields fell. Market participants now anticipate more Federal Reserve interest rate cuts, with CME Group data showing a 26.6% chance of a rate cut at the January meeting. Bitcoin’s price action remains erratic amid allegations of market manipulation, large-scale liquidations, and failing to establish a clear trend, with speculation about another potential macro bottom similar to earlier yearly patterns.
