Bitcoin keeps falling through $85,000! The Bank of Japan is expected to raise interest rates today; watch out for arbitrage closing and another wave of selling.

U.S. November CPI data shows inflation cooling down, initially causing a surge in Crypto and U.S. stocks, but soon faced a fierce sell-off. BTC briefly dropped to $84,456 in the early morning, and Ethereum (ETH) also temporarily fell below $2,800.
(Background: Bloomberg analyst: Bitcoin may fall below 84,000! Bulls caught off guard by “Hawkish rate cuts,” Christmas rally spoiled)
(Additional context: Where’s the anticipated rate cut celebration? Interpreting the Fed’s “Hawkish rate cuts” and the non-QE balance sheet expansion buying bonds)

The U.S. Bureau of Labor Statistics (BLS) released the November 2025 Consumer Price Index (CPI) last night (18th). This is the first inflation report after the October data collection was interrupted due to the federal government shutdown lasting 43 days this year, and the October CPI report was canceled.

Compared to November 2024, the overall CPI increased by 2.7%, below the market expectation of 3.0%-3.1%; core CPI (excluding food and energy) rose by 2.6%, also below the expected 3.0%, reflecting stabilization in prices outside food and housing. Overall, this helps ease consumer burden, reinforces expectations of a soft landing for the economy, and increases the likelihood of the Fed further cutting rates.

Bitcoin and Ethereum initially rose then fell

After the CPI release, the crypto market surged, with Bitcoin approaching $90,000 at one point. However, it soon faced a fierce sell-off. BTC continued to fluctuate downward, briefly dropping to $84,456 at around 4 a.m., once again losing the psychological level of $85,000, and Ethereum (ETH) also temporarily fell below $2,800. (BTC current price: $85,326)

In the past 24 hours, data from Coinglass shows over 160,000 traders were liquidated, with a total liquidation amount of nearly $550 million, and the total crypto market cap slid to $2.87 trillion.

Bank of Japan to Announce Interest Rate Decision This Afternoon

Currently, the market is approaching extreme panic again. The Bank of Japan (BoJ) is expected to announce its rate decision at 11:00 a.m. today (19th), with Governor Ueda Kazuo explaining the policy direction. A likely rate hike may force long-term leveraged arbitrage trades using low-interest yen to close early, warning investors to beware of intense volatility.

From a technical perspective, $85,000 is a key support line for bulls. If the price cannot hold steady above $85,000 in the short term, it may further test $80,000.