Bitcoin Briefly Breaks $89,000 Amid Inflation Data Impact

2025/12/22 08:58

Bitcoin Surges Past $89,000 but Retraces After Inflation Data

Key Takeaways:

Bitcoin exceeded $89,000 amid lower-than-expected U.S. CPI.
ETFs witnessed continued outflows following CPI release.
Bitcoin retraced as ETF momentum diminished.

Bitcoin briefly surpassed $89,000 due to unexpected U.S. CPI data. However, it quickly retreated below this level amid ETF outflows, closing around $88,900, reflecting typical volatility patterns post-economic reports. No sustained gains confirmed by market data.

Bitcoin’s price briefly exceeded $89,000 on December 18, 2025, with the surge occurring after the release of the U.S. Consumer Price Index (CPI) data.

The event signals the impact of U.S. inflation figures on Bitcoin’s price, highlighting the asset’s sensitivity to economic data.

The rise above $89,000 followed cooling U.S. CPI data showing inflation at 2.7% year-over-year. Analysts attribute the brief rally to market expectations of a favorable economic climate. Bitcoin Surges Past $89,000 but Retraces After Inflation Data. Inflation data prompted initial gains, but Bitcoin faced headwinds from ETF outflows.

Following the BTC surge, prominent market traders including Crypto Tony highlighted potential trading ranges, advising trade breakouts only at specific levels. Crypto Tony, Trader, @CryptoTony__, “$90,600 and $89,800 is our range. Trade the breakout only.”.

Institutional support waned as spot ETFs reported outflows, impacting Bitcoin’s sustained growth past $89,000. Additionally, broader market sentiment remained cautious, with the Bitcoin Fear & Greed Index indicating extreme fear.

Historically, Bitcoin has experienced brief rallies triggered by macroeconomic data, but often lacks follow-through due to factors such as supply pressures. Aksel Kibar, a notable market analyst, suggests potential significant future price movements, influenced by global monetary policy changes.

Continued analysis indicates ongoing market caution, pointing to potential corrective phases before any sustained bullish trends. As regulatory landscapes shift, significant price movements may depend on broader institutional decisions and government monetary policies, reflecting past trends.

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