The bitcoin price dropped sharply today after a brief pump<\/a> near $90,000, sliding to $84,544 as the price sell-off continued into its second month.\u00a0<\/p>\n Bitcoin lost<\/a> 2% over the past 24 hours. It remains 5% below its seven-day high of $89,220 and hovers near the week\u2019s low of $84,596. Trading volume reached $56 billion. Bitcoin\u2019s market capitalization stands at $1.69 trillion. The circulating supply is roughly 19.96 million BTC out of a total 21 million, according to Bitcoin Magazine Pro data.\u00a0<\/p>\n The drop follows a brief rally that earlier saw the Bitcoin price test $89,000. The surge came after the U.S. released new Consumer Price Index data. Inflation rose 2.7% year over year in November, lower than expected. Core CPI, which excludes food and energy, fell to 2.6%, the lowest since early 2021.<\/p>\n Bitcoin jumped from intraday lows near $86,000 to challenge $89,000. Traders viewed the cooler inflation report as a potential signal for looser Federal Reserve policy in 2026. CME FedWatch data suggested slightly higher odds of a rate cut by March, though January moves remain unlikely.<\/p>\n The rally did not last. The bitcoin price failed to break $90,000 and slid to $84,4000. This pattern is familiar: sharp spikes<\/a> followed by quick retracements.<\/p>\n A persistent challenge is U.S.-listed spot Bitcoin ETFs. These funds, once a major source of demand, have seen net redemptions. The outflows<\/a> remove institutional support that previously helped stabilize the price. Without consistent ETF inflows, breakouts above $89,000 are harder to sustain.<\/p>\n Other economic indicators add uncertainty. Recent labor market data<\/a> showed U.S. unemployment rising to 4.6%, its highest since 2021. Job growth remains uneven. The mixed signals complicate Federal Reserve policy, suggesting a cautious approach despite easing inflation.<\/p>\n Political factors add to market complexity. President Donald Trump has publicly urged lower interest rates and suggested nominating a Fed chair favoring aggressive easing. Markets have largely treated the comments as noise, but the statements add a variable to the macro picture.<\/p>\n Technically, the bitcoin price is consolidating rather than trending. Resistance forms just below $90,000. Supply above this level remains strong, held by investors who bought during prior rallies.\u00a0<\/p>\n Analysts at Bitwise recently suggested<\/a> Bitcoin could break its historical four-year cycle. The firm noted BTC might reach new all-time highs in 2026 with lower volatility and reduced correlation to equities.<\/p>\n The Bitcoin Fear and Greed Index currently sits<\/a> at 17\/100, signaling extreme fear. Historically, readings in this range have coincided with undervaluation. Contrarian investors see potential buying opportunities, though sentiment remains cautious.<\/p>\nWhat\u2019s dragging down the bitcoin price?<\/h2>\n
Is $70,000 next?\u00a0<\/h2>\n
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