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Bitcoin Whipsaws After Soft CPI, Reverses From Near $90,000 to the Mid-$80,000s

Year-end thin liquidity is leaving rallies fragile, with traders prioritizing downside protection.

Overview

  • Bitcoin jumped toward $89,000 on a cooler 2.7% U.S. CPI print before sliding back to around $86,000, extending this week’s sharp intraday reversals.
  • U.S. spot Bitcoin ETFs logged a $457.3 million net inflow on Dec. 17 led by Fidelity’s FBTC and BlackRock’s IBIT, a day after $277 million in outflows, underscoring volatile institutional demand.
  • Options data show heavy put positioning around the $85,000 strike, negative skew and rising implied volatility near 45%–50%, signaling defensive hedging into the Dec. 26 expiry.
  • Derivatives liquidations swelled to roughly $500 million over 24 hours as total crypto capitalization again tested below $3 trillion, with Bitcoin’s market dominance near 60%.
  • On-chain metrics highlight renewed selling by long-term holders, and market-depth readings point to thin liquidity heading into the Bank of Japan decision and the holiday period.