Bitcoin Price Movement and Market Dynamics on 18 December 2025
Bitcoin’s spot price recovered to $90,121 USD on 18 December 2025, surpassing the $90,000 threshold for the second time within a 24‑hour period. The rebound was driven by a sharp liquidation of short positions, with approximately $60 million of crypto shorts evaporating in a 30‑minute window. Binance was among the exchanges reporting the most pronounced short‑heavy liquidation flows, indicating a shift in market sentiment from bearish to bullish within the same day.
The price action occurred against a backdrop of mixed macro‑economic signals. The latest U.S. Consumer Price Index (CPI) for November, released at 13:35 UTC, showed a modest year‑over‑year increase of 2.7 %. Analysts interpret this figure as a potential catalyst for a year‑end rally, as it may temper expectations of aggressive rate cuts by the Federal Reserve. However, the CPI data also contributed to a broader perception that the current environment constitutes a “crypto winter,” as highlighted in an analysis by Wolfe Research.
Institutional flows continued to favor Bitcoin over alternative assets. Bitcoin exchange‑traded funds (ETFs) recorded a net inflow of $457 million, representing the third‑largest single‑day inflow for the product since October. This inflow coincided with notable outflows from Ethereum, suggesting a consolidation of capital into the most liquid and widely recognized crypto asset. The inflow magnitude was reinforced by a separate report noting the strongest Bitcoin ETF inflow in more than a month, underscoring sustained institutional interest.
Bitcoin’s dominance over the broader cryptocurrency market exhibited a familiar cyclical pattern. A chart released by CryptoELITES illustrated a recurring structure in Bitcoin dominance versus “others” dominance, suggesting that the market is pausing ahead of key technical tests. This observation aligns with a broader discussion on whether the traditional four‑year Bitcoin cycle is holding or breaking down, as raised by analyst Lark Davis.
Bitcoin’s price relative to gold fell to the lowest level seen since January 2024, indicating a relative underperformance of Bitcoin against precious metals. Meanwhile, the Bitcoin‑Gold ratio’s decline may signal a shift in risk appetite among investors, with some preferring the perceived safety of gold over the more volatile crypto market.
Other noteworthy events included the Taiwan Ministry of Justice’s custody of 210.45 BTC seized from criminal cases, and a broader market pause prompted by the observed dominance cycle. The combination of these developments paints a complex picture of Bitcoin’s current position: a price rebound driven by short liquidation, institutional inflows reinforcing the asset’s status, and macro‑economic data that may influence future rate‑cut expectations and risk sentiment.