The release of U.S. inflation figures for November triggered a volatile sequence in cryptocurrency markets this Wednesday. Initial investor enthusiasm quickly gave way to doubt, creating a whipsaw effect for Bitcoin’s price. The digital asset briefly surged past $89,000 following the Consumer Price Index (CPI) report, only to retreat sharply to approximately $86,000. This reversal stemmed from growing scrutiny over the quality of the data, with particular focus on the methodology for calculating housing costs. Bitcoin currently trades nearly 30% below its October peak above $126,000.
ETF Inflows Signal Renewed Institutional Interest
Contrasting the mixed on-chain signals, U.S.-based spot Bitcoin ETFs recorded a significant resurgence in demand. On December 17, these funds attracted net inflows of $457.3 million, marking the strongest single day of inflows since November 11. This follows a period of outflows and suggests a returning institutional appetite. The average purchase price for these ETF holdings is noted at just under $84,000, slightly below the prevailing market price at the time of reporting.
A Fleeting Surge on CPI News
November’s CPI data indicated a notable deceleration in headline inflation, dropping to 2.7% from the previous 3.0%. Bitcoin’s immediate reaction was a rapid price advance from $86,200 to a high near $89,300. These gains proved ephemeral, however, evaporating within hours as market participants began to question the underlying calculations. The asset subsequently dipped to around $85,500.
Market analysts are monitoring several key technical levels:
– Resistance Zone: $93,000 – $95,000
– Short-Term Holder Cost Basis: $101,500
– Support Level: The True Market Mean at $81,300
– Average U.S. ETF Purchase Price: Approximately $83,844
Should investors sell immediately? Or is it worth buying Bitcoin?
Long-Term Holders Accelerate Distribution
On-chain analytics present a striking trend of divestment by long-term investors. Data from CryptoQuant reveals that since the start of 2023, holders have parted with 1.6 million Bitcoin that had previously remained dormant for a minimum of two years. This divested volume is equivalent to roughly $140 billion. The year 2025 alone has seen nearly $300 billion worth of Bitcoin re-enter circulation.
Concurrently, Bitcoin’s realized capitalization—a metric that values each coin at the price of its last on-chain movement—has climbed to a record high of $1.05 trillion. The rise in this metric despite lower spot prices points to genuine capital entering the ecosystem, rather than purely speculative price action.
Nevertheless, concerning signals emerge from network activity. The average number of active addresses has fallen to approximately 660,000, its lowest point in twelve months. Miners are also facing pressure, with their daily revenue declining from $50 million in the third quarter to about $40 million currently.
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