Bitcoin keeps falling, hitting $85,000! The Bank of Japan is expected to raise interest rates today, so be careful to unwind arbitrage positions and trigger a sell-off
U.S. CPI data for November showed that inflation has cooled. Cryptocurrencies and U.S. stocks originally rose, but they soon encountered violent selling. BTC fell to $84,456 in the early morning, and Ethereum (ETH) also briefly fell below $2,800.
(Preliminary summary: Bloomberg analysts: Bitcoin may fall below 84,000 magnesium! Bulls were ambushed by "hawkish interest rate cuts", and the Christmas market was ruined)
(Background supplement: Where is the carnival about the interest rate cut? Interpretation of the Fed's "hawkish interest rate cuts" and the expansion of bond purchases that are not QE)
The U.S. Bureau of Labor Statistics (BLS) released the 2025 11 Monthly Consumer Price Index (CPI). It is the first inflation report since the October CPI report was canceled due to a disruption in data collection in October due to the 43-day federal government shutdown this year.
Compared with November 2024, the overall CPI increased by 2.7%, lower than market expectations of 3.0%-3.1%; core CPI (excluding food and energy) increased by 2.6%, also lower than the expected 3.0%, reflecting that prices other than food and housing have stabilized. Overall, it will help ease consumer burdens, strengthen expectations for a soft landing for the economy, and strengthen the possibility of further interest rate cuts by the Federal Reserve.
Bitcoin and Ethereum first rose and then fell
After the CPI was announced, the cryptocurrency market generally rose, and Bitcoin once approached US$90,000. But it soon suffered another violent sell-off. BTC continued to fluctuate lower, once falling to US$84,456 at around 4 o'clock this morning, once again falling below the psychological level of US$85,000, and Ethereum (ETH) also briefly fell below US$2,800. (BTC is currently trading at US$85,326)
In the past 24 hours, Coinglass data shows that more than 16 Thousands of traders liquidated their positions, with a liquidation amount of nearly US$550 million, and the total market value of the crypto market simultaneously fell to US$2.87 trillion.
The Bank of Japan announced interest rates this afternoon
The current market is once again approaching extreme panic, and the Bank of Japan (BoJ) The results of the interest rate decision are expected to be announced at 11:00 am today (19th). President Kazuo Ueda will explain the policy direction to the outside world. The high probability of raising interest rates may force arbitrage trades that have long used low-interest yen leverage to close their positions in advance, reminding investors to be careful of violent fluctuations.
Technically speaking, $85,000 is the key line of defense for bulls. If it cannot stand firm at $85,000 in the short term, it may further backtest $80,000.
