Inflation's Down, But So Is Bitcoin: Why BTC Gets Sold At $90,000 Every Time

Bitcoin (CRYPTO: BTC) is back to $86,000 in volatile U.S. trading hours on Thursday, which saw inflation cool more than expected in November.

What Happened: Market commentatr The Kobeissi Letter highlighted that U.S. core CPI fell to 2.6% year-over-year, the lowest since March 2021 and a sharp downside surprise versus expectations.

The print marked one of the largest inflation decelerations since 2023.

Rate-cut expectations jumped following the data, though markets still price no move in January pending further confirmation.

While inflation is slowing, prices are not falling, cumulative inflation since 2020 now sits at 25.2%, keeping consumer pressure elevated.

Risk assets initially reacted positively, with Bitcoin spiking to $89,000.

The S&P 500 climbed to within 2% of record highs as investors look ahead to potential Fed leadership changes, fiscal stimulus, and what could be a volatile but opportunity-rich 2026.

The gains were reversed after mid-day as Bitcoin retreated back to $86,000 and the index falling back below 6,800 points.

Also Read: Bitcoin, Ethereum, Solana To Hit All-Time Highs In 2026, Bitwise Predicts

What's Next: Michael van de Poppe said the CPI miss strengthens the disinflation narrative, calling it a clear tailwind for risk assets.

With the Bank of Japan rate hike largely priced in, conditions may be forming for renewed risk-on momentum, including upside for Bitcoin.

Crypto trader KillaXBT noted that Bitcoin fully retraced its post-CPI rally, erasing initial gains despite the bullish data.

After banking 25% profits, remaining exposure now risks a breakeven stop.

If hit, focus shifts to $83,000 as the next key level.

Altcoin Sherpa says Bitcoin is near a local bottom, with downside likely capped in the $75,000?$80,000 range.

Fundstrat's Tom Lee added that the disinflation surprise boosts the odds of a year-end risk rally, supporting further upside across equities and crypto, including Bitcoin and Ethereum.

Read Next: 

• Bitcoin Defends $87,000 While Ethereum, XRP, Dogecoin Slide Ahead Of Japan Interest Rate Decision

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