CPI Shows Slowing US Inflation As Bitcoin Travels To $90K

Bitcoin (BTC) is close to returning to $90,000 after US inflation slowed more than expected, with November CPI coming in at 2.7% year-over-year versus 3.1% forecasts. The soft print narrowed the gap on the Federal Reserve's 2% target, easing near-term inflation and reviving risk appetite in markets.

Main Receptors:

The lower-than-expected CPI print generated a positive reaction from Bitcoin as new positions opened with typical short covering.

Onchain data shows “balance-sheet” repair and loss for BTC, not capitulation.

A CPI print will push the price of BTC higher as the position rebuilds around $90,000

Back as a crypto trader, Bitcoin's post-CPI breakout indicates growing open interest, pointing to a hot position rather than a simple short-sellers squeeze. Options gamma exposure remains in a relatively balanced position, indicating that price is less constrained and liquidity is more volatile.

However, the move was still seen as an initiative rather than the start of a new trend. The early rally was largely liquidity-driven, leaving room for short-term pullbacks as traders reassessed positions after the initial reaction.

The final macroeconomic event of the year is the Bank of Japan's (BOJ) interest rate decision on December 19. While the BOJ's policy changes may affect global liquidity through the yen currency markets, recent price action suggests that much of this risk may already be reflected in Bitcoin's range-bound behavior over the past few sessions. If the result is not disturbing, it will remove one of the last hurdles of uncertainty for BTC in the near future.

Related: Bitcoin's Volatility Below Nvidia as Investor Base Grows in 2025: Bitwise

BTC onchain data is aimed at stabilization, not distribution.

Data from CryptoQuant indicates that Bitcoin will move into a maintenance phase starting in October. Exchange metrics such as Net-Unrealized Profit/Loss (NUPL) show that unrealized losses have stopped growing, and while the Earnings Cost Profit Ratio (SOPR) is hovering around the break, coins are being sold for costs rather than panic.

Deposit activity on the major exchanges is mainly characterized by short-term downtrends and fading as prices stabilize, reinforcing the view that the selling pressure is reactive, not structural. Meanwhile, gross active address revenues remain elevated, but MVRV has flattened, signaling a trade-off in the region rather than reviving overvaluation.

However, the latest inflation data may now tilt things for the better. If the pressure on the dollar eases and real yields decrease in the coming days, Bitcoin's ongoing stabilization could turn into a sustained reversal move, especially if $90,000 is recovered.

From a technical perspective, BTC cleared $90,000 and retook a position above the monthly VWAP (Volume Weighted Average Price) to demonstrate the buyer's conviction. A daily close above the level will be critical, with immediate sell-side liquidity at the fair value gap (FVG) between $90,500 and $92,000.

Refusal of the short position and increase will keep BTC in line to test the swing low of $83,800.

RELATED: Bitcoin Saves Liquidity Levels As US CPI Inflation Falls To Lowest Since 2021

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