Bitcoin, the pioneer cryptocurrency, experienced a price drop of 1.75% during Wednesday’s U.S. market hours, settling at $85,900. This decline emerged amidst growing market uncertainty surrounding the Bank of Japan’s upcoming interest rate decision. With crypto enthusiasts anxiously awaiting updated inflation data, such as the November Core CPI report, Bitcoin appears to be losing critical technical support, signaling potential for a prolonged downturn ahead.
Labor Market Data Adds Pressure to Bitcoin Performance
Adding to the unease, recent November labor statistics reported a jobless rate of 4.6%, the highest in over four years. Although nonfarm employers added a modest 64,000 jobs to the workforce, this follows a decline of 105,000 positions the prior month, much of which was influenced by federal budget cuts. Significant employment gains were seen in sectors like healthcare and construction, while industries such as transportation, warehousing, and government faced notable losses. These developments point to a weakening hiring trend and escalating underemployment.
According to CME FedWatch data, there’s now only a 24.4% probability of a 25 basis point rate decrease at the Federal Reserve’s January 2026 policy meeting. Analysts link these adjusted outlooks to weaker economic activity and ongoing efforts to manage inflation effectively.
Market Trends & Technical Analysis
The recent bearish movement in Bitcoin price aligns with a technical setup signaling further downside risks. Over the past three weeks, Bitcoin recorded a brief rally, climbing from $80,537 to $86,605—a 7.5% increase. However, this recovery formed part of a bearish continuation pattern, commonly known as an inverted flag. This chart formation typically combines a steep downward trendline with a temporary upward correction, ultimately maintaining negative momentum.
A critical breakout below Bitcoin’s support trendline on Monday exacerbated the bearish trend, driving prices further downward. The Relative Strength Index (RSI) now sits at 37%, reinforcing negative sentiment as traders brace for extended losses. Analysts predict prices could fall an additional 7%, retesting support at around $86,600. Conversely, reclaiming support above $90,000 could invalidate the bearish outlook.
The Road Ahead for Bitcoin Investors
Traders and investors remain highly tuned into economic indicators like labor and inflation data, both of which directly influence policy changes and asset performance across traditional and digital markets. The next key marker will be the Core CPI report for November, slated for release on December 18, 2025. Forecasts suggest the Core CPI may remain steady at 3.0% year-over-year, following slight declines earlier in the year.
Despite short-term challenges, Bitcoin enthusiasts can find solace in the cryptocurrency’s supply dynamics. As analyst Darkfost highlighted, Bitcoin’s supply growth rate remains below 1% per year, in line with its programmed issuance schedule. This scarcity continues to drive optimism among long-term holders, who see potential for significant upside in the years ahead.
Recommended Product for Bitcoin Enthusiasts
For those involved in cryptocurrency trading, tools like the Ledger Nano X hardware wallet offer robust security for managing digital assets. This hardware wallet supports Bitcoin, Ethereum, and over 1,800 other cryptocurrencies, making it a must-have accessory for safeguarding your investments. Learn more about the Ledger Nano X here.
As global market uncertainties persist, the crypto landscape continues to evolve. Whether you’re a trader or an investor, staying informed and leveraging reliable tools can make all the difference in navigating these turbulent times.
