The price of Bitcoin took a notable dip today, slipping to $84,544 following a brief surge that brought it near $90,000. This decrease marks an ongoing trend, with Bitcoin experiencing a sell-off that has persisted for two consecutive months. Over the past 24 hours, Bitcoin’s value has dropped by 2%, remaining 5% lower than its recent seven-day peak of $89,220 and close to this week’s low of $84,596. Trading volume reached $56 billion, and Bitcoin’s market capitalization is currently valued at $1.69 trillion. The circulating supply sits at approximately 19.96 million BTC out of a maximum of 21 million.
This decline follows a short rally spurred by the release of new Consumer Price Index (CPI) data from the U.S., which indicated a year-over-year inflation rise of 2.7% in November—lower than market expectations. The core CPI, excluding food and energy costs, fell to 2.6%, representing the lowest figure since early 2021. On the heels of this report, Bitcoin surged from intraday lows around $86,000, momentarily challenging the $89,000 mark. Traders interpreted the cooling inflation data as a potential precursor to looser monetary policies from the Federal Reserve in the coming years. Despite this initial optimism, Bitcoin struggled to maintain its upward momentum, failing to break through the $90,000 barrier, leading to a quick retreat to the current levels.
A primary factor contributing to Bitcoin’s price decline is the recent trend of net redemptions from U.S.-listed spot Bitcoin ETFs, which had previously been a significant demand source for the cryptocurrency. The resultant outflows have diminished institutional support, making it increasingly difficult for Bitcoin to maintain upward breakouts, particularly above the $89,000 threshold. Economic indicators continue to add layers of uncertainty to the market. Recent labor data revealed that U.S. unemployment has risen to 4.6%, the highest level since 2021, revealing uneven job growth that complicates the Federal Reserve’s monetary stance amid a backdrop of easing inflation.
Political narratives further complicate the market dynamics. Former President Donald Trump has publicly advocated for lower interest rates and hinted at nominating a Federal Reserve chair inclined toward aggressive monetary easing. Although financial markets have largely discounted these comments, they add another variable to the broader economic landscape.
Currently, Bitcoin’s price appears to be consolidating rather than following a definitive trend, facing significant resistance just below the $90,000 mark. Analysts at Bitwise have recently speculated that Bitcoin may break its historical four-year cycle, potentially reaching new all-time highs in 2026, characterized by lower volatility and decreased correlation to stock markets. Currently, the Bitcoin Fear and Greed Index registers at 17 out of 100, indicating extreme fear in the market. Historically, such low readings have coincided with undervaluation, prompting contrarian investors to see potential buying opportunities despite the prevailing cautious sentiment.
Looking ahead, technical analysts from Bitcoin Magazine have highlighted that the $84,000 support level is under scrutiny. A drop below this threshold could lead Bitcoin to test the $72,000 to $68,000 range, with expectations for initial rebounds from that lower zone. Nonetheless, if the price falls through $84,000, it could lead to accelerated declines toward $70,000, with bearish market sentiment currently dominating. For bullish momentum to regain traction, significant buying volume will be necessary to push prices above resistance levels extending between $94,000 and $118,000.
As of the latest data, Bitcoin’s value is positioned at $84,812, maintaining a trading volume of $56 billion and a market capitalization of $1.69 trillion, with the circulating supply remaining at about 19.96 million BTC.
