Bitcoin continues to trade within a narrow range, failing to capitalize on favorable macroeconomic news. The leading cryptocurrency remains unable to breach the psychologically significant $90,000 threshold, with on-chain metrics simultaneously indicating a notable slowdown in network engagement.
Recent U.S. Consumer Price Index data for November came in softer than market forecasts. The year-over-year headline inflation rate was reported at 2.7%, notably below the analyst consensus estimate of 3.1%. Core inflation, which excludes volatile food and energy prices, also cooled to 2.6%.
The initial market reaction was positive, briefly propelling Bitcoin toward $89,500 as traders priced in the increased likelihood of Federal Reserve interest rate cuts in 2026. However, this momentum proved short-lived. The price encountered strong resistance at the $90,000 level, triggering a pullback to as low as $85,500 before finding temporary stability around $88,300.
This reversal was exacerbated by significant pressure in the derivatives market. Leveraged positions worth over $540 million were liquidated within a 24-hour window, with long positions accounting for the majority. The failure to overcome the $90,000 resistance level set off a chain reaction of forced selling.
Despite ongoing price volatility, underlying blockchain data reveals a contrasting picture of diminished activity. The number of active addresses and daily transaction counts have fallen to their lowest levels this year. Current transaction volume sits approximately 55% below the annual peaks recorded earlier.
Should investors sell immediately? Or is it worth buying Bitcoin?
This reduced network congestion has pushed transaction fees lower. Miner revenue from fees now stands at only about $500,000 per day, a figure far removed from the highs seen in prior phases of the market cycle. The decline in on-chain metrics suggests waning interest from retail participants and a reduction in speculative trading flows.
On the regulatory front, progress continues, albeit at a measured pace. The U.S. Securities and Exchange Commission (SEC) has initiated proceedings to review the proposed BlackRock Bitcoin Premium Income ETF. This actively managed fund is designed to generate yield by selling call options on spot Bitcoin ETFs. While an immediate decision is not expected, the product remains in the pipeline for potential approval in 2026.
Concurrently, the CME Group is expanding its suite of crypto derivatives, further solidifying the institutional trading infrastructure. Bitcoin maintains its role as the cornerstone of the digital asset market, though its near-term price trajectory appears more dependent on short-term technical factors than these long-term structural developments.
Market observers are now focused on a critical support zone between $85,000 and $87,000. A sustained break below this area could signal the beginning of a deeper corrective phase. Conversely, a decisive reclaim of the $90,000 level, accompanied by strong trading volume, is viewed as the necessary catalyst for a renewed upward move heading into the new year. Until such a breakout occurs, a cautious sentiment is likely to prevail.
