Bitcoin Holds Near $87,000 as Traders Weigh Softer U.S. Inflation and Rate Cut Outlook

Key Moments

Bitcoin Price Action

Bitcoin was little changed on Friday, holding near the $87,000 mark after several days of constrained price swings, as traders assessed unexpectedly soft U.S. inflation data and its implications for Federal Reserve policy.

The largest cryptocurrency last changed hands 0.6% higher at $87,121.6 by 01:52 ET (06:52 GMT).

Despite the modest intraday gain, Bitcoin is set for a weekly loss of nearly 4%, extending a consolidation phase that followed strong advances earlier in the year. Over the past week, trading has largely unfolded within a narrow range.

Range-Bound Trade and Liquidity Conditions

Bitcoin has struggled multiple times this month to sustain a move back above the $90,000 threshold, which is viewed as an important psychological barrier for the market.

Seasonally thin liquidity, typical for late December, has intensified investor caution and reduced follow-through after brief rallies. Trading activity has stayed muted, making prices more sensitive to smaller order flows and encouraging continued range-bound behavior.

Today on the @trylimitless hourlies

will Bitcoin close above or below $87,896 by 9:00UTC today
(market closes in 45mins)

60% above
40% says below

I think market will close above…let's see 👀 pic.twitter.com/W7v79yjsdO

— Cmvng (@i_am_vickyd) December 19, 2025

Impact of Softer U.S. CPI on Fed Expectations

The cryptocurrency market showed only a muted response to U.S. consumer price figures released on Thursday, which surprised to the downside, with annual inflation recorded at 2.7%.

The weaker-than-expected reading strengthened market expectations that the Federal Reserve could move more aggressively to cut interest rates in 2026. Pricing in interest rate futures now reflects higher odds of easing beginning in early 2026, as moderating inflation reduces constraints on policymakers.

Lower interest rates are generally seen as supportive for risk-oriented assets by decreasing the opportunity cost of holding non-yielding instruments such as Bitcoin. However, in the absence of major crypto-specific catalysts, the inflation surprise alone was insufficient to push Bitcoin meaningfully higher.

Institutional Interest: ICE-MoonPay Deal Talks

Intercontinental Exchange Inc (NYSE:ICE), the parent company of the New York Stock Exchange, is in discussions to invest in crypto payments company MoonPay as part of a new funding round, Bloomberg News reported on Thursday, citing people familiar with the matter.

According to the report, New York-based MoonPay is close to finalizing the capital raise and is aiming for a valuation of about $5 billion.

The talks highlight growing Wall Street interest in digital assets amid a more favourable U.S. political climate under President Donald Trump.

Broader Crypto Market: Altcoins Largely Flat

Altcoins showed mostly subdued performance on Friday, tracking Bitcoin’s tight trading conditions.

Most major alternative tokens were stagnant, with world no.2 crypto Ethereum rising 1.8% to $2,926.92 and world no. 3 crypto XRP holding largely steady at $1.84. Solana and Cardano also saw limited movement, while Polygon slipped 1.1%.