Bitcoin moved lower on Tuesday, bringing its recent rebound to a halt as investor caution toward cryptocurrencies persisted. A risk-averse mood was reinforced by anticipation ahead of key U.S. economic data releases scheduled later in the day.
The world’s largest cryptocurrency slipped 1.1% to around $87,815 in early trading. Bitcoin had climbed back toward the $90,000 level earlier in the week, but selling pressure returned as markets turned defensive.
Broader cryptocurrency prices also edged lower after a brief recovery. However, losses remained relatively contained due to thin trading volumes caused by year-end holiday conditions.
Bitcoin rebound stalls ahead of key U.S. data
Bitcoin’s recent bounce lost momentum as traders waited for important U.S. economic indicators. Third-quarter gross domestic product data is expected to show a modest slowdown in growth, reflecting softer retail spending and signs of cooling in the labor market.
Investors are also focused on the personal consumption expenditures (PCE) price index for October, the preferred inflation gauge of the Federal Reserve. Any evidence of easing inflation or weakening economic activity could strengthen expectations for additional interest rate cuts.
Analysts cautioned, however, that data from October and November may have been distorted by the extended U.S. government shutdown. As a result, figures from December and the fourth quarter are expected to provide a clearer picture of the economy’s underlying strength.
Strategy pauses Bitcoin purchases and builds cash
Strategy Inc, led by Michael Saylor and the largest corporate holder of Bitcoin, has paused new purchases of the cryptocurrency in recent weeks while boosting its cash reserves.
In a regulatory filing, the company said it raised $748 million in the week ending December 21 but made no Bitcoin acquisitions during that period. Earlier in December, Strategy had bought roughly $2 billion worth of Bitcoin, lifting its total holdings to 671,268 coins.
The company’s stock has come under pressure in recent months amid growing concerns about the long-term sustainability of its Bitcoin-focused strategy. Earlier this month, Strategy also set aside a $1.4 billion reserve to cover future dividend and interest obligations, as prolonged weakness in Bitcoin prices raised fears it could eventually be forced to sell some of its holdings.
Shares of Strategy have lost roughly half their value in 2025, with additional pressure coming after the stock was excluded from a major MSCI index.
Altcoins track Bitcoin lower
The broader crypto market followed Bitcoin’s decline. Ether, the second-largest cryptocurrency, fell 1.8% to around $2,970. BNB slid 1% to $850, while XRP dropped 1.8% to near $1.88.
Among other major tokens, Solana declined 0.8% and Cardano slipped 0.2%. Meme coins also weakened, with Dogecoin down 0.5% and the $TRUMP token falling 2.1%.
