Softer-than-expected private inflation readings offered a brief glimmer of hope that Friday’s market slump might ease, but bitcoin’s decline gathered momentum early in the U.S. session. Breaking from its now-familiar pattern of late-weekend sell-offs, the cryptocurrency extended its overnight slide and fell back to $90,000 heading into Friday morning trading.

The pullback unwinds most of the recovery from last Sunday’s steep drop, which briefly sent bitcoin tumbling to $84,000 during a bout of panic selling. The renewed weakness aligns with analysts’ previous expectations that the crypto market may be entering a more prolonged consolidation phase rather than staging a swift year-end rebound.

Crypto-linked equities mirrored the downturn, with Strategy (MSTR), Galaxy Digital (GLXY), CleanSpark (CLSK), and American Bitcoin (ABTC) all sliding between 4% and 7% in the morning session.

Data from Velo suggests bitcoin’s most consistently bearish window over the past six months has been the hour before U.S. markets open and the first hour after the open. Fridays have also been the weakest day of the week on average across that period.

Anecdotal inflation data brings a brief lift

The market tone received a modest boost after the University of Michigan Consumer Sentiment report arrived at 10 a.m. ET. While heavily influenced by respondents’ political leanings and far from a reliable inflation gauge, the survey’s December 1-Year Inflation Expectation eased to 4.1% from 4.5%, below forecasts. The 5-Year Expectation declined to 3.2% from 3.4%, also better than expected.

With official economic data scarce in recent weeks, such private surveys have taken on outsized importance. Bitcoin ticked up toward $91,000 following the release.

With the Federal Reserve widely expected—virtually priced at 100%—to cut rates at its final meeting of the year next week, traders are shifting their attention to early 2026. Continued easing in inflation could create space for additional rate cuts in the first quarter, a potentially bullish tailwind for risk assets, including crypto.