Cryptocurrency Prices and Market Update: Bitcoin and Crypto Surge on CPI Data

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Bitcoin and other cryptocurrencies rallied early Wednesday following the release of December's Consumer Price Index (CPI) data, which showed that core inflation pressures eased more than analysts had anticipated.

Bitcoin surged close to $99,000 on Wednesday morning, up from approximately $96,000 on Tuesday. Meanwhile, earlier in the week on Monday, crypto markets experienced a downturn, driven by ongoing concerns over December’s employment report and rising inflation expectations. Bitcoin dipped as low as $90,000 during Monday’s trading session before recovering later in the week.

Bitcoin ETFs Witness Record Outflows

In ETF-related news, Bitcoin spot exchange-traded funds saw significant outflows last week. On Wednesday, total outflows reached $569 million—the second-highest since their introduction in January 2024. Leading the charge in outflows was the Fidelity Wise Origin Bitcoin ETF (FBTC), recording $258.7 million, followed by iShares Bitcoin Trust ETF (IBIT) with $124 million. Notably, on December 19, Bitcoin ETFs saw record outflows of nearly $672 million.

Bitcoin Price Projections for 2025

Market analysts remain optimistic about Bitcoin's future price trajectory. Earlier this month, H.C. Wainwright revised its 2025 price forecast, raising the target from $145,000 to $225,000. The firm pointed to favorable market conditions in 2024 that set the stage for what they believe could be a major bull market.

Bitcoin’s Price Swings in December

December was a turbulent month for Bitcoin, starting with a sharp rise above $100,000 on December 5, followed by a further increase to $107,000 on December 16. However, the price fell to just under $93,000 on December 23. Since then, Bitcoin has been trading within a range of $94,000 to $99,000 to close out the year.

Overall, digital assets have experienced renewed momentum since the U.S. election in November, with many attributing the gains to the President-elect’s pro-cryptocurrency stance and policy outlook.