Why $88,000 Could Be the Calm Before a $94,000 Push.

Bitcoin $BTC is trading near $88,750, holding steady after last week’s pullback as the market pauses just below a critical technical pivot. While short-term charts reflect hesitation following a bearish flag breakdown earlier in December, broader fundamentals continue to frame Bitcoin as a market in consolidation rather than decline.

Macro Signals Keep BTC Supported:

From a macro perspective, Bitcoin remains underpinned by easing inflation expectations and a shifting US rate outlook.

Recent US CPI data showed continued disinflation, reinforcing market bets that the Federal Reserve could move closer to rate cuts in 2026. Lower real yields tend to reduce the opportunity cost of holding Bitcoin, supporting demand during periods of consolidation.

Institutional positioning also remains constructive. Spot Bitcoin ETFs continue to anchor long-term inflows, even as short-term traders rotate out during volatility.

At the same time, regulatory clarity is slowly improving across major jurisdictions, helping Bitcoin retain its role as a core digital asset rather than a speculative outlier.