Inflation Cools and Stocks Rise, So Why Is Bitcoin Still Floundering? The cryptocurrency rallied momentarily Thursday morning before dropping back to $85K later in the day. Why Is Bitcoin Stuck With Inflation Cooling and Stocks Up? The Bureau of Labor Statistics (BLS) published its long-awaited Consumer Price Index (CPI) report on Thursday, revealing cooler-than-expected inflation data. Stocks rose on the news, and so did bitcoin, albeit temporarily. The cryptocurrency swung up to $89K before nosediving to $85K, reinforcing an unpredictable pattern that has once again left pundits somewhat vexed. “We need to know what happened on October 10,” crypto trader Elliot Wainman wrote. “It’s VERY apparent that the market broke that day and nothing has been the same since.” Headline inflation for November came in at 2.7%, lower than the 3.1% predicted by economists. The last reading from September showed a 3% CPI. October’s data was never collected due to the 43-day government shutdown. The closure also caused November’s report to be published eight days behind schedule. Core inflation, which subtracts food and energy categories due to their volatile nature, rose 2.6%, also lower than predicted. The U.S. Federal Reserve, which has been having a tough time fulfilling its dual mandate of maintaining stable prices and full employment, may take a more dovish stance in 2026 if inflation continues to cool. Fed Chairman Jerome Powell has been caught between a rock and a hard place as both inflation and unemployment have trended upward over the past few months, today’s report notwithstanding. But odds of a January cut remain relatively low, according to the CME Fedwatch Tool, although most experts seem to agree that a March reduction is highly likely. The S&P 500, Nasdaq, and Dow all surged 0.85%, 1.44%, and 0.23% respectively, but bitcoin was treading water, dipping 0.37% at the time of reporting. “We haven’t seen Bitcoin or Alts trade like this since 2018,” Wainman said. “We need answers.” Overview of Market Metrics Bitcoin was trading at $85,472.12, down 0.37% for the day and 6.02% for the week, according to Coinmarketcap data at the time of writing. The digital asset’s price fluctuated between $85,242.71 and $89,412.66 over the past 24 hours. Daily trading volume climbed 14.61% to $48.62 billion and market capitalization remained flat at $1.71 trillion. Bitcoin dominance rose by 0.08% to 59.80%, as several high-profile alts shed more than 8%. Total bitcoin futures open interest dropped 1.20% to $56.35 billion, according to Coinglass. Liquidations remained elevated on Thursday, totaling $176.22 million. Long investors lost $112.28 million, twice as much as short sellers, who saw $63.94 million in liquidations.
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Inflation Cools and Stocks Rise, So Why Is Bitcoin Still Floundering?

The cryptocurrency rallied momentarily Thursday morning before dropping back to $85K later in the day.

Why Is Bitcoin Stuck With Inflation Cooling and Stocks Up?

The Bureau of Labor Statistics (BLS) published its long-awaited Consumer Price Index (CPI) report on Thursday, revealing cooler-than-expected inflation data. Stocks rose on the news, and so did bitcoin, albeit temporarily. The cryptocurrency swung up to $89K before nosediving to $85K, reinforcing an unpredictable pattern that has once again left pundits somewhat vexed.

“We need to know what happened on October 10,” crypto trader Elliot Wainman wrote. “It’s VERY apparent that the market broke that day and nothing has been the same since.”

Headline inflation for November came in at 2.7%, lower than the 3.1% predicted by economists. The last reading from September showed a 3% CPI. October’s data was never collected due to the 43-day government shutdown. The closure also caused November’s report to be published eight days behind schedule. Core inflation, which subtracts food and energy categories due to their volatile nature, rose 2.6%, also lower than predicted.

The U.S. Federal Reserve, which has been having a tough time fulfilling its dual mandate of maintaining stable prices and full employment, may take a more dovish stance in 2026 if inflation continues to cool. Fed Chairman Jerome Powell has been caught between a rock and a hard place as both inflation and unemployment have trended upward over the past few months, today’s report notwithstanding.

But odds of a January cut remain relatively low, according to the CME Fedwatch Tool, although most experts seem to agree that a March reduction is highly likely. The S&P 500, Nasdaq, and Dow all surged 0.85%, 1.44%, and 0.23% respectively, but bitcoin was treading water, dipping 0.37% at the time of reporting.

“We haven’t seen Bitcoin or Alts trade like this since 2018,” Wainman said. “We need answers.”

Overview of Market Metrics

Bitcoin was trading at $85,472.12, down 0.37% for the day and 6.02% for the week, according to Coinmarketcap data at the time of writing. The digital asset’s price fluctuated between $85,242.71 and $89,412.66 over the past 24 hours.

Daily trading volume climbed 14.61% to $48.62 billion and market capitalization remained flat at $1.71 trillion. Bitcoin dominance rose by 0.08% to 59.80%, as several high-profile alts shed more than 8%.

Total bitcoin futures open interest dropped 1.20% to $56.35 billion, according to Coinglass. Liquidations remained elevated on Thursday, totaling $176.22 million. Long investors lost $112.28 million, twice as much as short sellers, who saw $63.94 million in liquidations.