Bitcoin settles near $87,000 after weak US inflation data

Bitcoin was largely steady on Friday near the $87,000 level, after moving within tight ranges earlier in the week, as investors assessed US inflation data that came in weaker than expected, strengthening expectations of future interest rate cuts by the Federal Reserve.

The world’s largest cryptocurrency was trading up 0.6% at $87,121.6 as of 01:52 AM US Eastern Time (06:52 GMT).

Bitcoin is on track to post a weekly decline of about 4%, extending a period of sideways movement following strong gains earlier this year. The cryptocurrency spent most of the past week confined within a narrow price range.

Bitcoin remains range-bound

Bitcoin has repeatedly failed this month to stage a sustained rebound above the $90,000 level, which is considered a key psychological resistance.

Weak liquidity, which is typical of late-December trading, has also reinforced investor caution and limited the durability of short-term rallies. Trading volumes remained low, leaving prices more sensitive to modest capital flows and encouraging continued range-bound trading.

Weaker US consumer price index boosts easing bets

The world’s largest cryptocurrency showed a limited immediate reaction to US consumer price data released on Thursday, which came in weaker than expected, with annual inflation at 2.7%.

Thursday’s data reinforced market bets that the Federal Reserve could move to cut interest rates at a faster pace during 2026. Interest rate futures now reflect rising expectations toward monetary easing in early 2026, as easing price pressures reduce constraints on policymakers.

Lower interest rates typically support high-risk assets by reducing the opportunity cost of holding non-yielding investments such as Bitcoin.

In the absence of major cryptocurrency-specific developments to lift sentiment, inflation data alone was not enough to drive a decisive rally in Bitcoin.

New York Stock Exchange owner plans investment in crypto payments firm MoonPay – Bloomberg

Bloomberg reported, citing people familiar with the matter, that Intercontinental Exchange Inc, listed on the New York Stock Exchange under the ticker (NYSE: ICE) and the owner of the NYSE, is in talks to invest in crypto payments firm MoonPay as part of a new funding round.

According to the report, New York-based MoonPay is close to completing the fundraising process and is targeting a valuation of around $5 billion.

These talks highlight growing Wall Street interest in digital assets amid a more favorable US political environment under President Donald Trump.

Cryptocurrency prices today: altcoins muted as they track Bitcoin

Most alternative cryptocurrencies posted limited or near-flat moves on Friday.

Ethereum, the world’s second-largest cryptocurrency, rose 1.8% to $2,926.92.

By contrast, XRP, the third-largest cryptocurrency globally, was largely unchanged at $1.84.