Why Is Bitcoin Playing Hide and Seek With the Market? 🤔💸

by

Hold onto your wallets, folks! The cryptocurrency had a little pep in its step Thursday morning before it flopped back down to $85K like a bad magician’s rabbit! 🐇✨

Why Is Bitcoin Stuck in a Funk with Inflation Cooling and Stocks Doing the Cha-Cha?

The Bureau of Labor Statistics (BLS) finally dropped its long-awaited Consumer Price Index report on Thursday, revealing that inflation is as cool as a cucumber, and stocks did their happy dance! 📈💃 But Bitcoin? It went up and down like a roller coaster at a carnival, peaking at $89K before plummeting back to $85K. It’s like watching a soap opera-full of drama and absolutely unpredictable! 🎢

“We need to know what happened on October 10,” crypto trader Elliot Wainman tweeted, probably while sipping his overpriced latte. “It’s VERY apparent that the market broke that day and nothing has been the same since.” Well, thanks for the news flash, Sherlock! 🔍☕

Headline inflation for November came in at a spicy 2.7%, lower than economists’ prediction of 3.1%. The last reading from September showed a 3% CPI, and here we are-October’s data was a ghost because of the 43-day government shutdown! 👻🗓️ Talk about spooky business! And to top it all off, November’s report was late-eight days late! What are they doing, playing hide and seek with the numbers? 😱

(Inflation came in at 2.7% for November, causing economists to do a double take! / Bureau of Labor Statistics)

The U.S. Federal Reserve is caught between a rock and a hard place, trying to juggle stable prices and full employment like a circus performer! 🎪 If inflation continues to cool, they might take a more dovish stance in 2026. Fed Chairman Jerome Powell must feel like he’s on a seesaw with inflation and unemployment swinging upward! 🎠

But wait! The odds of a January rate cut are lower than my chances of winning the lottery-according to the CME Fedwatch Tool. However, most experts agree that a March reduction is highly likely. Meanwhile, the S&P 500, Nasdaq, and Dow are throwing themselves a party, surging 0.85%, 1.44%, and 0.23% respectively, while Bitcoin is just splashing around like a lost puppy, dipping 0.37%. 🐶💦

“We haven’t seen Bitcoin or Alts trade like this since 2018,” Wainman proclaimed, probably clutching his crystal ball. “We need answers!” I bet he’s also wondering where his socks disappeared to! 🧦🔮

Overview of Market Metrics

Bitcoin was trading at $85,472.12, down 0.37% for the day and a whopping 6.02% for the week, according to Coinmarketcap data at the time of writing. It’s like watching a football team that can’t score-fluctuating between $85,242.71 and $89,412.66 over the past 24 hours! 🏈

(BTC price / Trading View)

Daily trading volume climbed 14.61% to $48.62 billion, and market capitalization remained flat at $1.71 trillion, like a pancake! 🥞 Meanwhile, Bitcoin dominance rose by 0.08% to 59.80%, as some high-profile alts shed more than 8%-talk about a wardrobe malfunction! 👗💔

(BTC dominance / Trading View)

Total bitcoin futures open interest dropped by 1.20% to $56.35 billion, according to Coinglass. Liquidations were as high as a giraffe’s neck on Thursday, totaling $176.22 million! Long investors lost $112.28 million, while short sellers only saw $63.94 million in liquidations. Ouch! That’s gotta hurt! 🦒💔

FAQ ⚡

  • Why didn’t bitcoin rally after the CPI report?
    Bitcoin briefly jumped on cooler inflation data but quickly reversed, like a politician dodging a question! 🏃‍♂️💨
  • What did the latest CPI report show?
    Headline inflation cooled to 2.7% in November, below forecasts, while core CPI also came in lower than expected-surprise, surprise! 🎉
  • How are stocks reacting compared to bitcoin?
    U.S. equities surged on the inflation news, while bitcoin lagged behind, like a kid at the back of the class! 🧒📚
  • What are traders blaming for bitcoin’s weakness?
    Some blame structural market damage from the October 10 liquidation event rather than current macro data-because, of course, it’s never their fault! 🙄

Read More

2025-12-19 00:24