This week started out shaky due to our reaction to Federal Reserve uncertainty, but sentiment quickly turned around. Ethereum jumped almost 2% and confidence returned as macroeconomic data softened. Early on, the ongoing conflict with Bessent Warren framed much of the conversation, especially as the price of Bitcoin remained firm despite the volatility. But the week ended on a calm market.
The market setup this week can easily be seen as a pause before something bigger. Inflation data surprised on the downside and liquidity injections gradually accumulated across the world. In this context, the Bessent Warren shock has become more than just political noise, it is now directly linked to expectations for regulation, liquidity and the future direction of the Bitcoin price.
Inflation Cools as Liquidity Increases for Bitcoin Price Sequel
US inflation stood at 2.7%, well below the 3.1% forecast. This single data point changed the tone for risk assets. Lower inflation opens the door for policy easing and, historically, this environment benefits crypto. As expectations evolve, Bitcoin’s price continues to reflect growing confidence that tighter conditions are behind us.
Official projections still point to a rate cut in 2026, but many analysts expect more if inflation remains subdued. On top of that, talk of possible $2,000 stimulus checks tied to rate cuts is resurfacing. Even limited distribution would likely result in speculative assets, thereby adding upward pressure on the price of Bitcoin.
Me in the UK is watching Americans receive their $2,000 stimulus check.
pic.twitter.com/hnS1iKE3ar
– Olivier (@0xOliverX) November 9, 2025
Rumors of quantitative easing are no longer whispers. The Fed has effectively ended its tightening, purchasing $23.13 billion in Treasuries this week alone. Add to that the Treasury’s $51 billion cash infusion and a $5.7 billion debt buyback, plus another $20.8 billion from the Fed. It’s just bullish.
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Regulation, politics and the path to 2026: Bessent Warren’s altercation
China also added 1.05 trillion yuan of liquidity this week, following the global trend. Meanwhile, the US crypto market structure bill has been pushed back to January as negotiations continue. Although the delays frustrate us, the clarity could ultimately support Bitcoin’s price in the long term, especially as Bessent Warren’s division highlights the flaws in past regulatory approaches.
Scott Bessent didn’t mince his words when he tweeted:
With apologies to @SenWarren, you can’t forget three of America’s biggest bank failures… all under the senator’s beloved and ill-conceived regulatory straitjacket.
The above comment sharpened Bessent’s narrative against Warren and strengthened the argument that smarter surveillance benefits markets as a catalyst for Bitcoin prices.
With the total crypto market cap nearing $3.1 trillion and bitcoin rising back to $90,000, the momentum remains intact. Liquidity trends suggest 2026 could be explosive, and if history is any guide, Bitcoin price could reach its all-time high.
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Crypto Market News article today, December 20: Crypto and Bitcoin price will hit new all-time high next year? Agree with Warren Vendetta! appeared first on 99Bitcoins.
