Bitcoin bounced back on Wednesday and climbed to around $87,900 after holding strong support near $85,000. Even though the price recovered, traders are still careful because an important U.S. inflation report (CPI) is coming on Thursday.
By Wednesday afternoon, Bitcoin was trading near $87,300, up from its recent low of $85,427 on December 16.
---
What Happened: Bitcoin Price Went Up
Bitcoin’s price increased after new U.S. jobs data was released.
64,000 new jobs were added in November, higher than expected
Economists were expecting around 45,000 jobs
The unemployment rate rose to 4.6%, the highest level since September 2021
Because of this sudden price jump:
Around $38 million in short positions were liquidated
Only $23.5 million in long positions were liquidated
This means many traders betting on Bitcoin going down were caught off guard.
---
Why This Is Important: CPI Timing for Pakistan 🇵🇰
The U.S. Consumer Price Index (CPI) report will be released on:
🕣 Thursday, December 18
🇺🇸 8:30 AM ET
🇵🇰 6:30 PM Pakistan Time
Expected numbers:
Headline CPI: 3.0% – 3.1%
Core CPI: 2.9% – 3.1%
If inflation comes in higher than expected, the Federal Reserve may pause interest rate cuts in January, which could cause strong volatility in Bitcoin and crypto markets.
---
More Risk Ahead
Bank of Japan interest rate decision on Friday
Markets are pricing in a 98% chance of a 0.25% rate hike
---
Expert View
David Hernandez from 21Shares says strong U.S. job data may pressure Bitcoin in the short term, but Bitcoin’s long-term story remains strong despite expected volatility.
