{"id":880762,"date":"2025-12-26T01:14:44","date_gmt":"2025-12-26T07:14:44","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/26\/bitcoin-how-did-btc-react-to-u-s-inflation-cooling-down\/"},"modified":"2025-12-26T01:14:44","modified_gmt":"2025-12-26T07:14:44","slug":"bitcoin-how-did-btc-react-to-u-s-inflation-cooling-down","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/26\/bitcoin-how-did-btc-react-to-u-s-inflation-cooling-down\/","title":{"rendered":"Bitcoin: How did BTC react to U.S. inflation cooling down?"},"content":{"rendered":"

Bitcoins <\/p>\n

\n

\"bitcoins\n\t\t\t\t\t\t<\/p>\n

\n
\n
\n

\"bitcoins<\/p>\n

Journalist<\/p>\n<\/p><\/div>\n

\n

Posted:

<\/p><\/div>\n<\/p><\/div>\n

\n

To understand what lies ahead, it\u2019s crucial to first look back.<\/span><\/p>\n

Q4 has upended market expectations. What was supposed to be a \u201cseasonal tailwind\u201d for Bitcoin [BTC] ended up being its weakest quarter of 2025, with BTC down 23%, erasing over 60% of the gains from Q2 and Q3.<\/span><\/p>\n

The result? Optimism shook, leveraged traders flushed, support levels cracked, and fear spiked. Notably, even with BTC still about 30% off its $126k early-October peak, broad \u201cdip buying\u201d hasn\u2019t really kicked in.<\/span><\/p>\n

\n

\"bitcoins<\/a><\/p>\n

Source: TradingView (BTC\/USDT)<\/p>\n<\/div>\n

In short, the market has swung from optimism to caution.<\/span><\/p>\n

And yet, Tom Lee\u2019s BTC<\/a> call hasn\u2019t budged. In a recent interview<\/a>, he projected a new all-time high for BTC before the first month of 2026. That brings up the big question: What \u201cexactly\u201d lies ahead for the crypto market?<\/span><\/p>\n

Looking at recent macro data, his\u00a0call isn\u2019t completely out of the blue.<\/span><\/p>\n

Given this context, then, could Bitcoin finally hit its historical Q1 trend<\/a> this time, with the quarter averaging a 50% ROI and historically ranking as the asset\u2019s second most bullish period?<\/span><\/p>\n

Bitcoins U.S. inflation hits multi-year lows<\/strong><\/h2>\n

Beyond the charts, Q4 surprised on the macro front too.<\/span><\/p>\n

Even after back-to-back Fed rate cuts, Bitcoin barely moved. The Federal shutdown clearly kept investors cautious, with Open Interest <\/a>in check. In short, traders weren\u2019t chasing greed, and sentiment stayed muted.<\/span><\/p>\n

However, now, with the shutdown behind us, November\u2019s CPI report<\/a> is back in focus. Notably, core inflation has dropped to 2.6%, the lowest since April 2021, while the overall CPI came in at 2.7% versus 3.1% expected.<\/span><\/p>\n

\n

\"bitcoins<\/a><\/p>\n

Source: TradingEconomics<\/p>\n<\/div>\n

On the technical side, this puts U.S. inflation close to the Fed\u2019s 2% target.<\/span><\/p>\n

Notably, the market is already reacting<\/a>: BTC jumped 2.93% intraday, clearly shrugging off FUD around the BOJ rate hike. Riding this \u201cbreak\u201d, Ark Invest<\/a> quickly moved into crypto stocks, hinting at renewed institutional interest.<\/span><\/p>\n

Overall, the cooling inflation report has given the market a new spark. Will it hold? With Q4\u2019s 23% bleed behind us and most FUD cleared, it looks like Bitcoin could be forming a solid base to repeat its typical Q1 bullish streak.<\/span><\/p>\n

\n

Bitcoins Final Thoughts<\/strong><\/h2>\n