Gazette of the Curious: Bitcoin’s Bold 12% Rise & the Mad Economic Circus

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Picture this: the mighty dollar, that grand old fellow, seems to be catching its breath-fading from the fiery furnace of inflation, only to emerge slightly singed but notably calmer. According to the Wise Truflation oracle, the inflation rate has decided to retreat to a modest 2.45% YoY-like a sheepdog herding the wild inflation wolves, just ahead of the Federal’s next grand spectacle. Meanwhile, the official CPI stands stubbornly close to 3%, reminding us that even in the calm, chaos lurks. Oh, the drama of it all! 🐑🔥

Meanwhile, the Federal Reserve, that eternal puppeteer, has finally declared the end of its Quantitative Tightening (QT) dance-a move as surprising as finding a sober uncle at a wedding. Since December 1st, 2025, the government’s wallet stopped shrinking, leaving the markets wondering whether they should breathe a sigh of relief or panic. 🧐

Enter Bitcoin, the rebellious enfant terrible of finance, already trading on its own little roller coaster. The crypto hero, sensing the Fed’s little game, makes a daring leap up, as if to say, “Look at me! I’ve got balls, and I don’t care about your balance sheets!” It’s like a street performer crowding the main stage right before the politicians make their move. The market is watching, waiting-currency in the game of political chess. 🎭💸

The Liquidity Curtain Rises

Now, let us peer behind the curtain at the Fed’s balance sheet-the financial version of a trusting uncle’s wallet that has finally paused before another big spend. In 2022, it swelled near a staggering $8.97 trillion, a display of fiscal bravado. Fast forward to December 3rd, and the assets have dwindled to $6.54 trillion-roughly $2.43 trillion less, thanks to QT’s relentless hunger. It’s as if the government decided to save up for a rainy day… or perhaps a rainy decade. ☔️💰

The September-November run-off? A cozy $37 billion, leaving no trace of the spooky Standing Repo Facility ghost-zero usage, nada. Perhaps the markets are whispering, “All clear, Captain-no storms in sight.” Or maybe they’re just pretending to be calm while hoarding their popcorn. 🍿

And so, the stop sign for QT has been flipped-no more shrinking the money bag, even if the QE fairy hasn’t arrived to fill it just yet. The liquidity drought is finally on pause-like a bad haircut waiting for the stylist to return. ✂️

Bitcoin’s Victory Lap

On the four-hour clock, our darling Bitcoin shot up around 12.6%, from a humble $83,500 to a daring near $94,000-proof that cryptocurrencies can run faster than a gossip’s tongue. The bulls cleverly defended the $90,900 mark like a loyal dog, while the sellers held their ground, unwilling to let the price climb too high too fast. It’s a game of cat and mouse, with a dash of desperation. 🐱🐭

Right now, Bitcoin is dancing in a narrow corridor-like a shy debutante hesitant before the grand ball. The macroeconomic fog clutters the picture, making traders cautious, hesitant, afraid to dance without a partner. 🎩

Rate Cut Rumors-A Spark for the Fireworks

The CME FedWatch tool, that infamous crystal ball of market sentiment, now gives an 87.2% chance that our beloved Federal will cut rates by 25 basis points. Only fools believe they’ll leave rates unchanged-most are busy dreaming of cheaper dollars. If the cut lands, Bitcoin might just waltz into the first half of 2026 with a smile on its digital face. But beware-the risk of pushback means we might be stuck in this sluggish dance a while longer. 🕺💃

So, sit back, sip your tea-or perhaps a more spirited beverage-and watch as the financial circus continues. Will inflation continue its slow retreat into the shadows? Will Bitcoin break free or just do a little jig in its cage? Only time and a bit of sarcasm will tell. 🎪😉

Bottom Line? Maybe

  • The fancy Truflation charts show inflation dropping to 2.45% YoY, from a previous 2.7%. Meanwhile, the CPI stubbornly holds near 3%, as if saying, “I’m still here-don’t forget about me!”
  • The Fed’s QT has officially gone on holiday, and Bitcoin has-somehow-climbed about 12% from the low, whispering, “I knew it! You can’t keep me down forever.”

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2025-12-06 03:08