Bitcoin Briefly Tops $89K on Cooler U.S. Inflation, Fails to Hold Gains

Bitcoin jumped above $89,000 after cooler-than-expected U.S. CPI data signaled easing inflation and boosted hopes of future Federal Reserve rate cuts, but the move quickly faded as BTC failed to break the key $90,000 resistance and slipped back near $88,000. Headline inflation came in at 2.7% year-over-year, with core CPI at 2.6%, the lowest since early 2021, supporting the initial rally. However, ongoing spot Bitcoin ETF outflows and mixed macroeconomic signals capped upside momentum. Market sentiment remains cautious, with the Fear and Greed Index at 17/100 indicating extreme fear, a level that has historically aligned with potential accumulation zones despite ongoing price consolidation.