Bitcoin Stuck Below $90,000 as Soft U.S. Inflation Fails to Spark Breakout

Bitcoin traded in a narrow range on Friday, hovering near the $87,000 level, as investors continued to adopt a cautious stance despite softer-than-expected U.S. inflation data that reinforced expectations of future Federal Reserve rate cuts.

The world’s largest cryptocurrency was last seen 0.6% higher at $87,121, but remained on track to post a weekly loss of nearly 4%, extending a consolidation phase that has dominated trading in recent weeks.

Range-bound price action persists

Bitcoin has struggled throughout December to regain momentum above the $90,000 psychological resistance, with each attempt failing to attract sustained buying interest. Thin liquidity typical of year-end trading has exacerbated the lack of conviction, keeping volumes subdued and encouraging range-bound behavior.

With fewer participants active in the market, even modest flows have struggled to produce a decisive move, leaving Bitcoin confined to a tight band and vulnerable to short-term reversals.

Softer U.S. CPI supports rate-cut narrative

Thursday’s U.S. consumer price index showed annual inflation easing to 2.7%, below expectations. The data strengthened market confidence that the Federal Reserve will have more room to cut interest rates in 2026, with futures markets now pricing in a higher probability of earlier policy easing.

In theory, lower interest rates tend to favor risk assets such as cryptocurrencies by reducing the opportunity cost of holding non-yielding investments like Bitcoin. However, the inflation surprise failed to generate an immediate upside response, underscoring the market’s lack of strong catalysts.

Institutional interest simmers in the background

Adding to the longer-term narrative, Intercontinental Exchange (ICE)—the owner of the New York Stock Exchange—was reported by Bloomberg to be in talks to invest in crypto payments firm MoonPay, which is targeting a valuation of around $5 billion. The discussions highlight growing institutional engagement with digital assets, supported by a more favorable regulatory and political backdrop in the United States.

Altcoins remain subdued

Broader crypto markets mirrored Bitcoin’s muted tone. Ethereum edged higher, while XRP, Solana, and Cardano traded largely flat. Meme tokens posted modest gains, but overall activity remained subdued, reflecting a market waiting for clearer macro or crypto-specific signals.

For now, Bitcoin’s outlook remains closely tied to liquidity conditions, Fed policy expectations, and year-end market dynamics, with a decisive breakout likely deferred until trading volumes normalize in the new year.