Bitcoin Dips to $85,000 Post-CPI Surge, XRP Declines

The crypto market experienced significant volatility on December 18, 2025, after a softer-than-expected U.S. CPI print led to bitcoin reaching a peak of $89,000 before retracting to $85,000. XRP also felt the impact, declining in value amidst the broader market movements.

Price Action Details

• Bitcoin's current price stands at $85,000, down 4.5% in the last 24 hours, with a 7-day change of -2.1% and a 30-day change of +12.3%. CoinGecko
• Key support for bitcoin is at $83,000, with resistance at $88,000.
• Trading volume surged to 150% of the 30-day average, indicating heightened market activity.
• Bitcoin's market cap decreased by $30 billion to $1.6 trillion.

Driving Factors

• The primary catalyst for the price movement was the U.S. CPI report showing inflation at 2.5%, lower than the expected 2.8%.
• On-chain data revealed a spike in large transactions over $100,000, with a total of 1,200 such transactions in the last 24 hours. TradingView
• Whale activity was notable, with a single address moving 5,000 BTC to an exchange, contributing to the sell-off pressure.
• News of potential regulatory changes in the U.S. regarding crypto taxation also influenced market sentiment.

Broader Market Context

• Compared to Bitcoin, Ethereum saw a smaller decline, dropping 3% to $3,500 over the same period.
• The DeFi sector's total value locked (TVL) decreased by 5% to $150 billion, reflecting broader market trends. DefiLlama
• The Fear & Greed Index moved from 'Greed' to 'Neutral' at 50, indicating a shift in market sentiment.
• Analysts at JPMorgan noted that the CPI data might signal a more dovish Federal Reserve stance, potentially benefiting risk assets like cryptocurrencies in the long term. Crypto News