Bitcoin Trips On $90K As CPI Shows Cooling US Inflation
Bitcoin approached $90,000 following a lower-than-expected US inflation report, with November CPI at 2.7% year-over-year, reducing market concerns around inflation and boosting risk sentiment. BTC’s rise is attributed to renewed positioning rather than short squeezes, as shown by increasing open interest and balanced options gamma exposure, which suggests prices could move if liquidity improves. Despite the recent upward move, traders view it as liquidity-driven and expect potential short-term pullbacks. The upcoming Bank of Japan interest rate decision could impact global liquidity, but current BTC price action suggests most such risks may already be factored in. On-chain data shows Bitcoin is stabilizing, not facing major distribution, with selling mostly occurring in reaction to brief price declines rather than persistent panic. Technical levels to watch are the $90,000 mark and the volume-weighted average price (VWAP); a daily close above these levels would signal stronger buyer conviction, while rejection may lead to retests of lower support near $83,800. Easing inflation and lower dollar pressure could favor further upside for Bitcoin if these thresholds are reclaimed.
