Bitcoin traded with limited momentum on Friday, holding above the $88,000 level after spending most of the week moving within a narrow range. Market participants remained cautious as they assessed unexpectedly soft U.S. inflation data, which strengthened expectations for future Federal Reserve interest rate cuts.
The world’s largest cryptocurrency was last seen up 0.1% at $88,422 as of 09:47 ET.
Despite modest gains on the day, Bitcoin is set to record a slight weekly decline. The price action reflects an ongoing consolidation phase following the strong rally seen earlier this year. For much of the past week, Bitcoin has remained confined to tight trading ranges, with limited directional conviction.
Bitcoin remains rangebound below key resistance
Bitcoin has struggled throughout the month to sustain a move above the $90,000 level, which continues to act as a major psychological resistance zone.
Seasonally thin liquidity, typical of late-December trading conditions, has increased investor caution and reduced follow-through after brief price rallies. Trading volumes have remained subdued, leaving Bitcoin more sensitive to small capital flows and reinforcing range-bound behavior.
Soft U.S. CPI strengthens Fed rate-cut expectations
Bitcoin showed little immediate reaction to Thursday’s U.S. consumer price index report, which surprised to the downside. Annual inflation came in at 2.7%, below market expectations.
The softer inflation reading reinforced expectations that the Federal Reserve may accelerate interest rate cuts in 2026. Interest rate futures now point to growing confidence in easing early next year, as cooling price pressures give policymakers more flexibility.
Lower interest rates typically support risk assets by reducing the opportunity cost of holding non-yielding investments such as Bitcoin. However, in the absence of major crypto-specific catalysts, the inflation data alone was not enough to push prices decisively higher.
Citi projects Bitcoin surge toward 2026
Bitcoin could see significant upside over the next year, driven by rising adoption through exchange-traded funds and a more supportive regulatory environment in the United States, according to a new outlook from Citi.
The bank set a base-case price target of $143,000 for Bitcoin over the next 12 months, while outlining a bullish scenario above $189,000. In a downside case, Citi sees Bitcoin falling to around $78,500 if broader macroeconomic conditions deteriorate.
According to the analysts, their forecast assumes continued investor inflows, with ETF investments of roughly $15 billion expected to support higher token prices.
Citi also pointed to regulatory progress in the U.S. as a key demand driver. Lawmakers in the Senate are developing their own version of the House-passed Clarity Act, which would place Bitcoin under the supervision of the Commodity Futures Trading Commission. Clearer regulatory frameworks could help unlock broader participation from institutional investors.
For Ethereum, Citi set a price target of $4,304, implying nearly 46% upside from current levels.
NYSE owner explores investment in MoonPay
Intercontinental Exchange Inc, the owner of the New York Stock Exchange, is reportedly in talks to invest in crypto payments firm MoonPay as part of an upcoming funding round, according to a Bloomberg report citing sources familiar with the matter.
MoonPay is close to finalizing the fundraising and is targeting a valuation of approximately $5 billion. The potential investment highlights growing interest from traditional financial institutions in digital assets, supported by a more favorable political climate in the U.S. under President Donald Trump.
Crypto prices today: altcoins track Bitcoin
Most major altcoins showed limited movement on Friday, largely mirroring Bitcoin’s subdued performance.
Ethereum rose 0.7% to $2,960, while XRP slipped 1% to $1.88. Solana and Cardano were little changed, and Polygon declined by 2.5%.
Among meme tokens, Dogecoin edged slightly higher, while the $TRUMP token fell 0.7%.
