From Q4 dilemma to turnaround signal: Can cooling inflation revive Bitcoin's morale

2025-12-19 21:20:13

Abstract generation in progress

【Crypto World】Q4 Bitcoin market performance has indeed been a bit disappointing. Starting from the high of $126,000 in October, it has fallen by nearly 30%, with a quarterly decline of 23%, wiping out over 60% of the gains made in the first two quarters. The voices of leveraged positions being liquidated are nonstop, and the bearish sentiment once pressed the market to the brink.

But the story isn’t over yet. Recently, US inflation data showed a turning point—core CPI dropped to 2.6%, the lowest since April 2021. As soon as the news broke, Bitcoin surged by 2.93% intraday, and the market sentiment instantly shifted from pessimistic to somewhat heated. More notably, leading institutions like Ark Invest have started increasing their holdings in crypto-related stocks. This move itself is a signal: major capital is re-engaging with this market.

Although a large-scale bottom-fishing wave isn’t visible yet, the market is beginning to focus on the historical performance in the first quarter—which has traditionally been a strong period for Bitcoin. Institutional entry, data support, and psychological turning points are converging. How it will develop next depends on whether this rebound can be sustained.

BTC0.31%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
6
Repost
Share

Comment

0/400

orphaned_block

· 11h ago

Q4 was indeed hit hard this time, but as soon as CPI dropped, Bitcoin rebounded this much, indicating that the underlying funds are still there.

View OriginalReply0

PuzzledScholar

· 11h ago

Ah, is this the same old story of inflation saving the market? Does it really work that well? --- When CPI data improves, it bounces back, but the rebound is so fragile. It feels like market sentiment is extremely fragile. --- Is Ark increasing positions a signal? I remember last time a big drop was also described this way... --- Q4 indeed underperformed, but it's too early to talk about a turnaround now. Don't be fooled by the 2.93% rebound. --- Cooling inflation is definitely a positive, but how many uncertainties are still waiting ahead? --- People optimistic about Q1, have they forgotten last year's Q1 trend... --- I trust large capital inflows, just worried they might lead retail investors to exit first. --- That old saying comes to mind again: When good news is exhausted, it becomes bad news.

View OriginalReply0

DegenRecoveryGroup

· 11h ago

The underperformance is a bit exaggerated, but the inflation data did come at the right time. CPI dropped to 2.6%, and Bitcoin's rebound is also expected. Now we're just waiting to see if the first quarter can bring a major reversal.

View OriginalReply0

JustHodlIt