US inflation delivered the biggest positive surprise in months. Still, there was no sustained rally, as both Bitcoin and US stocks fell sharply during US trading hours.
Many traders were surprised by this price movement, but the charts point to a familiar explanation related to market structure, positions, and liquidity, rather than macroeconomic developments.
What happened after the US Consumer Price Index publication
The headline CPI fell to 2.7% year-on-year in November, well below the expectation of 3.1%. The core CPI also fell short of expectations at 2.6%.
On paper, this was one of the most risk-friendly inflation figures of 2025. The market initially reacted as expected: Bitcoin jumped towards $89,000, while the S&P 500 shot up immediately after the announcement.
But that rally did not last long.
Within about 30 minutes after the CPI publication, Bitcoin suddenly reversed. After reaching an intra-day high around $89,200, BTC quickly dropped towards $85,000.
The S&P 500 followed a similar pattern with strong intra-day fluctuations, causing many of the gains from the CPI news to be lost again before stabilizing.
This synchronized reversal in crypto and stocks is important. It indicates that the movement was not based on active sentiment but was structural.
Bitcoin taker sell volume tells the story
The clearest indication comes from the data of Bitcoin’s taker sell volume.
On the intra-day overview, we saw large spikes in taker sell volume exactly at the moment Bitcoin broke lower. Taker sells show market orders at the bid price – so actively selling, not calmly taking profits.
These spikes occurred mainly during U.S. trading hours and coincided with the fastest part of the decline.
The weekly overview shows the same pattern. Similar waves of selling occurred more frequently in the past week, usually during periods of high liquidity. This indicates repeated periods of forced or systematic selling, and not isolated sales by individuals.
These behaviors are associated with liquidation waves, volatility strategies, and algorithmic risk mitigation – all processes that accelerate once the price goes against leveraged positions.
The CPI report did not cause the decline because it was bad, but precisely because it was good.
Less strict inflation briefly led to more liquidity and smaller spreads. In such an environment, large market players can efficiently execute large transactions.
The rapid rebound of Bitcoin likely hit a zone with many open orders, stop-losses, and short-term leveraged positions directly. When the upward momentum stopped, the price reversed, and long liquidations and stop-outs were triggered.
The mandatory sales due to liquidations strengthened this movement. Therefore, the decline happened so quickly instead of gradually.
The swings of the S&P 500 show a similar pattern. Rapid declines and recoveries around macroeconomic news have often been related to hedging by market participants, gamma effects from options, and real-time risk adjustments by systematic cash flows.
Does this resemble manipulation?
The charts do not prove manipulation. But they show patterns that often go hand in hand with stop-runs and liquidity withdrawals:
Rapid movements towards clear technical levels
Reversals immediately after liquidity improves
Large bursts of aggressive selling during breakouts
Precise alignment with U.S. trading hours
This behavior often occurs in markets with high leverage. The most likely drivers are not individual persons, but large funds, market makers, and systematic strategies trading in futures, options, and spot markets. Their goal is not to determine the narrative, but efficiency in execution and risk management.
In crypto, where leverage remains high and liquidity quickly decreases outside of key time frames, these flows can seem extreme.
What this means for the future
The wave of selling does not invalidate the CPI signal. Inflation has genuinely cooled down, and that is favorable for risky assets in the long term. What the market saw now was a short-term repositioning, not a macro reversal.
In the short term, traders are monitoring whether Bitcoin can stay above recent support levels and whether selling pressure decreases after liquidating positions.
If the sales volume from buyers decreases and the price holds steady, the influence of the CPI data may still become visible in the upcoming sessions.
