李雅欣 Lǐ Yǎxīn

The correlation between Bitcoin and inflation has been debated for years. Supporters often suggest that Bitcoin’s fixed supply of 21 million coins makes it an ideal hedge against rising prices. However, recent market behavior shows the equation is far more complicated. 
Bitcoin sometimes benefits from inflation, and in some cases, it reacts like any other risk asset. Inflation trends, interest rate expectations, and Bitcoin’s own cycle help understanding the market's current situation.
Bitcoin’s Recent Market Position
Investors showed strong interest in Bitcoin during late 2025. BTC price traded between $90,000 and $95,000 during early December 2025 after rebounding from $83,000, which pushed the total global crypto market capitalization back to $3 trillion.
The recovery was also supported by renewed buying activity in spot Bitcoin exchange-traded funds, which saw fresh inflows on several trading days. These inflows indicated how regulated channels for Bitcoin investment remain active and influential.
Inflation Trends and Why They Matter
Financial markets are heavily impacted by inflation as it affects the central bank’s  decisions. According to latest data, headline inflation in the United States was close to 3.0% year-over-year. This level is above the previous 2024 readings but far below the extreme spikes seen in 2022 and 2023. Since inflation isn't increasing aggressively, many central banks are considering rate cuts. 
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When interest rates start to fall, investors usually look for assets that can deliver higher returns. This often favors risk-driven assets such as equities and Bitcoin. Steady inflation and the possibility of lower interest rates helped support Bitcoin’s rally in 2025.
Also Read: Bitcoin Crash: Who’s Emerging as the Big Winner?
Why Inflation Can Help Bitcoin
Many investors choose Bitcoin during inflation given its fixed supply of 21 million coins. Fiat currencies, on the other hand, can be printed in large quantities. This scarcity makes investors treat Bitcoin like digital gold. When the value of traditional money weakens, demand for scarce assets increases.
Another factor is the relationship between inflation and real interest rates; when inflation is elevated and interest rates fall, the real return on traditional savings becomes smaller. During such periods, the cost of holding non-yielding assets such as Bitcoin decreases, usually pushing more capital into speculative or alternative assets.
Spot Bitcoin ETFs augment this effect. Investors now have regulated access to Bitcoin through these funds; even a minor shift in inflation expectations can cause large inflows, increasing buying pressure and supporting BTC price. 
Why Inflation Does Not Always Benefit Bitcoin
While Bitcoin has many advantages, the cryptocurrency's price does not automatically increase when inflation rises. BTC has previously traded more like a risk-on asset than an inflation hedge. When the stock market experiences fear, Bitcoin often drops with equities, even if inflation is high.
High inflation can also trigger sudden interest-rate hikes. When this happens, liquidity is drained from markets. Risk assets also suffer during these periods.
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Crypto markets also have vulnerabilities. High leverage, concentrated ownership, and rapid liquidations can lead to steep drops that have little to do with macroeconomic fundamentals. Even when long-term factors favor Bitcoin, short-term volatility can overshadow them.
Impact on Bitcoin Mining and Supply
Inflation affects BTC price through investor demand and mining economics. Higher expenses for electricity, hardware, and financing can increase miners’ operational costs. When costs jump faster than Bitcoin’s price, miners may reduce selling activity to preserve coins, causing short-term supply in the market.
However, if inflation helps ease monetary policy and Bitcoin’s price rises, miners earn more revenue in fiat. This can improve profitability and reduce forced selling, which helps stabilize supply flows. Mining economics therefore plays a subtle but important role during inflationary periods.#BTCVSGOLD #BinanceBlockchainWeek #BTC86kJPShock #Binance #USJobsData $BTC

Bitcoin has once again entered a turbulent phase. After reaching an all-time high near $126,000 in October 2025, the world’s largest cryptocurrency has fallen to the $92,000–93,000 range in early December. This decline has erased more than $600 billion in market value. Despite the crash, Bitcoin still holds a market capitalization of around $1.8 trillion, while the full crypto market stands near $3.1–3.2 trillion, proving the role of digital assets in global finance. The scale of this sell-off has forced traders, institutions, and analysts to re-examine a familiar question: is Bitcoin headed for collapse?
The Scale of the Wipeout
This most recent downturn is proving out to be particularly severe; within a couple of weeks, Bitcoin lost over 26% of its October peak. More than $600 billion has been lost in the broader crypto sector since early October after many major tokens plunged sharply. That selloff came after an extraordinary period of growth, when Bitcoin price had surpassed the six-figure mark for the first time ever.
Such rapid gains often attract speculative buying, and when prices turn lower, reversal can be equally dramatic. The current wipeout reflects both the scale of the previous rally and the fragility of sentiment in a market still driven heavily by momentum.
Also Read: Will Bitcoin Benefit From Rising Inflation? Here's the Truth
What Triggered the Sell-Off
The drop in the price of Bitcoin was not caused by any single event but was rather induced through a combination of global, crypto-specific pressures. The biggest contributor was profit-taking after the powerful rally earlier in the year; traders who entered at lower prices began to close their positions and reduce demand, thereby allowing downward pressure to build.
Global economic uncertainty also played a major role. The fear of delayed interest-rate cuts and continued inflation pushed many investors away from risky assets. 
Sentiment was further rattled when reports of a security breach involving a Yearn Finance liquidity pool emerged. While it did not impact Bitcoin’s blockchain, this incident reminded investors about the ongoing vulnerabilities in the wider crypto ecosystem. 
Meanwhile, as prices dropped, the highly leveraged state of crypto derivatives triggered a wave of forced liquidation, accelerating the decline and deepening the market’s losses.
Bearish Bitcoin Price Prediction: Why Some Believe BTC Could Collapse
Critics say the recent events highlight structural weaknesses in Bitcoin. One major concern is extreme volatility; even with a market cap measured in trillions, Bitcoin can still lose a quarter of its value within weeks. To skeptics, such instability indicates that Bitcoin's price remains driven mostly by speculation, not through practical use or stable fundamentals.
Another argument from the bearish side has to do with how sensitive Bitcoin is to macroeconomic conditions. Though commonly referred to as "digital gold," Bitcoin still acts like a high-risk asset during periods of economic turmoil. When markets get cautious, Bitcoin tends to fall in companies with technology stocks and other speculative investments.
Another dark shadow hanging over the market is regulation. Governments across major economies continue to put crypto exchanges, stablecoins, and decentralised finance platforms under the microscope. Harsh regulation or enforcement actions could hit liquidity, limit investor access, and weaken confidence.
Other analysts also point to Bitcoin dominance, which sits around 57–59%. This concentration signals how the crypto market, as a whole, tends to fall when the price of BTC experiences severe stress. Critics warn this connection raises systemic risk, and therefore, makes a collapse more dangerous.

Bullish Bitcoin Price Prediction: Why Recovery is Expected by Many Experts

Despite the sell-off, many institutions and analysts perceive it as another correction in Bitcoin's long-term growth cycle, considering strong institutional adoption as one of the main reasons why a complete collapse is unlikely. With the launch and growth of spot Bitcoin ETFs, pension funds, asset managers, and long-term investors started to enter and allocate to Bitcoin in regulated environments. Consequently, this created a steady base of demand that was not there in prior cycles.
Many forecasts from research groups still suggest higher prices in the coming year. In a recent note, JPMorgan indicated that, under favorable market conditions, Bitcoin could reach around $170,000 in 6 to 12 months. Though this prediction recognizes the risks surrounding continued volatility, some analysts also point to the supply dynamics of Bitcoin, bolstered by recent halving events, which decrease the rate of new Bitcoin creation and support long-run price increases.
Another argument that helps support Bitcoin is its resilience over time. The network has lived through more than one 70 percent or higher crash, and yet, mining activity, security, and global distribution continued to increase. According to many long-term crypto funds, this gives investors fair reason to believe that a complete collapse is highly unlikely, supported by the strength of the wider ecosystem. 
Even with the drawdown, total crypto market capitalization remains above $3 trillion, while global stablecoin circulation is over $300 billion. These numbers indicate a continued growth in digital asset participation rather than a decline.
Is Bitcoin Really Destined to Collapse?
The answer depends on what “collapse” means. According to most analysts, a crash to zero is very unlikely. Such an outcome would take a combination of catastrophic regulatory actions across multiple major economies, a fundamental failure in Bitcoin’s protocol, and a complete abandonment by both miners and users. Currently, there is no sign of that.
The moderate bearish views envision Bitcoin starting a long decline as the enthusiasm fades, and new technologies outcompete it. The network would survive in such scenarios but gradually lose relevance and value.
The most talked-about scenario is one of continued cycles of strong rises and sharp crashes. Many analysts believe this is the most realistic path. Bitcoin might continue to take precipitous falls, only to recover at a later point, thanks to longer market cycles fueled by adoption, scarcity, and investment flows.
Also Read: Bitcoin Crash: Who’s Emerging as the Big Winner?
Final Thoughts
This latest crash is significant but not fatal, even as more than $600 billion in value was wiped away. Bitcoin remains a multi-trillion-dollar asset with deep global participation. The market is still growing, institutional interest is still strong, and the network is still functioning normally. At the same time, volatility has remained one of its defining features, and large swings should be expected.
It will be global economic conditions, regulatory developments, and the persistence of investor confidence in the digital-gold narrative that determines whether Bitcoin heads into a deeper downturn or readies itself for another rally. For the moment, the stats show a harsh correction and a collapse.#BinanceBlockchainWeek #BinanceBlockchainWeek #BTC86kJPShock #Binance #BTCVSGOLD $BTC

Bitcoin is currently trading in the range of $92,082–$92,540. The price has moved within a narrow band during the past 24 hours, showing typical volatility of around one to two percent. Bitcoin returned to this level after a highly unstable week in which the price first dropped below $86,000 and later climbed back into the low-to-mid $90,000 range. This recovery highlights Bitcoin’s ability to rebound quickly when sentiment shifts in its favor.
The recent rise has strengthened Bitcoin’s position as the world’s largest cryptocurrency by market value. The price movement has drawn attention from traders, institutions, and analysts who continue to monitor market signals for clues about the next major direction.
Recent Market Movement
Earlier in the week, Bitcoin fell below $86,000 amidst a strong risk-off tone across global markets. Investors were shying away from speculative assets amidst growing concerns about economic conditions, thus paving the way for a broad sell-off. After this sharp dip, Bitcoin regained momentum. Within a span of about two days, Bitcoin recorded an impressive jump of nearly 11%, marking one of its most significant upward moves since May 2025.

This rebound pushed the combined value of the entire cryptocurrency market to nearly $3.13 trillion. Bitcoin's market dominance climbed to around 59.1%, showing that fresh capital was flowing mainly into the most established digital asset rather than smaller alternative coins. Many analysts described the comeback as a sign that confidence in Bitcoin remains strong even during phases of heavy market pressure.
Also Read: Bitcoin Crash: Who’s Emerging as the Big Winner?
Why Bitcoin Rebounded
Interest-Rate Expectations and Their Impact
A major reason for the jump was a renewed expectation of a possible interest-rate cut by the United States Federal Reserve. Lower rates tend to brighten market sentiment since borrowing becomes cheaper and liquidity improves. Financial markets generally respond well to such conditions, and the crypto market is often among the first to reflect the shift in sentiment. Such optimism enabled Bitcoin to rapidly recoup losses after an earlier fall.
Higher Institutional Participation
Another key driver has been the consistent growth in institutional involvement. The number of asset managers and investment houses launching cryptocurrency-related products is also growing, which exposes Bitcoin to large investors. Analysts said that was a long-term structural shift. Greater involvement from incumbent institutions tends to inject stability, deeper liquidity, and greater trust into the market.
Bitcoin Price Prediction
Several financial analysts still feel bullish about the long-term prospects for Bitcoin. Analysts at JPMorgan Chase & Co. recently said Bitcoin could reach $170,000 over the next six to twelve months. The basis of this estimate is the idea that Bitcoin may increasingly act like gold, particularly as volatility decreases over time. A price model comparing Bitcoin with gold suggested the current level leaves considerable scope for substantial medium-term growth.
Bitcoin recently fell back from its all-time high above $126,000, and according to some analysts, the pullback was a healthy correction instead of relative weakness. In this view, Bitcoin's current range offers a favorable long-term positioning for investors who believe in the digital store-of-value narrative.
Financial planners encourage exposure cautiously. As cryptocurrencies are volatile, many professionals suggest crypto holdings should make up only a small portion of an overall investment strategy. Some recommendations range from 1% to 5% of a portfolio to keep risk tempered while still capturing potential long-term gains.
Risks That May Influence Price Direction
Bitcoin still carries a number of key risks. The first, and most visible, is ongoing volatility. Large price swings can occur in minutes; sudden losses are possible. Volatility could spur liquidation events-a forced closure of leveraged positions-that puts pressure on the market and accelerates downward moves.
Another hugely important factor driving cryptocurrencies is regulatory uncertainty: government decisions, taxation rules, and policies set by central banks could quickly and directly impact Bitcoin's price. Any regulatory action that restricts trading or reduces market participation may create immediate downward pressure.
Large institutional holders also influence the market. If a large company with significant Bitcoin reserves encounters financial difficulties or decides to reduce its holdings, the sell-off will definitely depress prices across all exchanges worldwide.
Effect on the Wider Crypto Market
Large price movements within Bitcoin generally set the tone for the entire cryptocurrency market. When Bitcoin rises, many smaller digital assets also grow due to strong correlations. When Bitcoin falls, alternative cryptocurrencies see steeper declines. This leadership role makes Bitcoin the central indicator of overall crypto-market health.
A steady or rising Bitcoin price generally instills confidence across the digital-asset landscape, attracting new investors, fostering innovation, and expanding awareness of blockchain technology. Yet frequent price swings will remind the market that cryptocurrencies operate in a developing, highly speculative environment.
Also Read: Will Bitcoin Benefit From Rising Inflation? Here's the Truth
Final Thoughts
The strong rise of Bitcoin from below $86,000 to over $92,000 reflects the toughness and resilience this cryptocurrency has gained through time, its ability to recover swiftly after downturns. Thus, the current range between $92,082-$92,540 reflects a balance between optimism and cautiousness as traders watch economic signals, institutional activity, and regulatory developments.
Forecasts like the $170,000 target among major analysts impart a certain confidence in Bitcoin's long-term potential. Still, volatility, economic uncertainty, and regulatory risks continue to govern the market. The next few months will show whether the recent rebound is the beginning of a new long-term upward trend.#BTC86kJPShock #BinanceBlockchainWeek #BTCVSGOLD #TrumpTariffs #Binance $BTC

Since debuting on Wall Street in mid-November, XRP ETFs have yet to see a red day. Total net inflows have surpassed $750 million, showing growing adoption and interest among traditional investors. What other altcoins are on the radars of institutions? The Solana coin and Digitap ($TAP) top this list. Are these the best altcoins to buy in December? 
While SOL appears to have bottomed out, $TAP’s run is just beginning. This new altcoin, currently in its early stages, has been hailed by experts as the best crypto to buy now due to its staggering upside potential as a low-cap coin. Its DeFi-TradFi narrative also makes it a favorite among institutional investors. By enabling users to spend digital assets like cash, it has mainstream appeal, positioning it as the most promising crypto to buy now. 
Digitap: A New Favorite Among Large-Volume Investors – The Best Crypto to Buy Now? 
Digitap isn’t only on the radars of retail investors; institutions and whales are also loading up. Its DeFi-TradFi narrative contributes to its appeal. Not only that. Its astounding growth prospects as an early project drive massive demand—early funding has surpassed $2.2 million in record time. 
Available for sale at $0.0334 in its second presale round, it is both heavily discounted and teeming with potential. However, the price is expected to jump to $0.0361 by the next round, meaning each hour presents an opportunity to lock in early. Meanwhile, a 319% gain is expected at its listing price of $0.14. But there is more. Experts project a staggering 45x rally after its much-anticipated market debut. 
Given the above, $TAP is positioned as the best crypto to buy now. Further contributing to the growing institutional demand is its novelty as the world’s first omni-bank. By allowing users to hold multiple assets and spend from a single unified balance, Digitap addresses the problem of juggling numerous apps for asset management.

Additionally, its virtual and physical cards are co-branded with Visa for global acceptance. These cards are also fully integrated with Apple Pay and Google Pay, enabling a seamless tap-to-pay payment experience. 

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XRP ETFs See Continuous Inflows 
XRP ETFs are arguably the most popular among the altcoin-based exchange-traded funds, edging out SOL and ETH ETFs. It made its debut in the US on November 14. Since then, it has been 11 consecutive days of net inflows, surpassing $750 million.

Unsurprisingly, the XRP price has reacted positively. The payment-based coin trades around $2.2, with many considering it one of the top altcoins to buy in December. Continuous inflows into XRP ETFs are expected to drive the price even higher. 
Cypress Demanincor, a crypto analyst on X with over 47,000 followers, predicts the XRP price will reach $5.17 this cycle, positioning it among the most promising altcoins to buy. With XRP ETFs a bullish catalyst to watch, the current price presents a low entry point. 
Why the Solana Coin May Have Bottomed Out 
The Solana coin dropped to the $120 support zone earlier this week. However, it has been steadily climbing up, currently trading above $140. With the bottom seemingly in, some top analysts consider SOL the most promising crypto to buy now. 

Like XRP, SOL ETFs are also live. Institutional investors now have indirect exposure to the Layer-1 coin, which is expected to contribute to a significant jump in the Solana coin price. 
Florian, a crypto analyst on X (formerly Twitter), has a $490 target for the Solana coin this cycle. With quantitative tightening (QT) officially coming to an end and a rate cut expected in December, a big leap is on the table, with SOL hailed by some as the best crypto to buy now. Although for higher gains, $TAP is a better pick due to its smaller market size. 
XRP, $TAP & SOL – What Big Players Are Buying
Continuous inflows into XRP ETFs show institutional appetite for Ripple. The Solana coin is another favorite—SOL ETFs are also growing rapidly. Meanwhile, $TAP’s blend of traditional banking and decentralized finance puts it on the radars of institutional investors. In its early stages, a 45x rally is projected after its market debut, along with the expected 319% listing gain, making it one of the top altcoins to buy this year. #XRP #ATP #solana #BTCVSGOLD #Binance $XRP $SOL