Bitcoin declined on Tuesday, extending its recent slide as investor risk appetite remained weak ahead of several important U.S. economic releases. Demand for speculative assets, including cryptocurrencies, stayed subdued as markets adopted a cautious stance.
Cryptocurrency prices broadly mirrored the prolonged downturn in global technology stocks. Growing concerns around artificial intelligence valuations prompted investors to lock in profits, weighing on tech shares and dampening sentiment toward high-risk assets such as crypto.
Bitcoin dropped around 4% to $85,987 during early trading, hovering near its lowest level in two weeks. The world’s largest cryptocurrency also remained close to a seven-month low reached in late November.
Bitcoin pressured ahead of key U.S. data
Bitcoin has steadily lost ground over the past week, finding little support from the Federal Reserve’s recent interest rate cut and its dovish tone on monetary policy.
Market caution persisted as traders awaited economic data that could shape the Fed’s next policy steps. U.S. nonfarm payrolls figures for November are due later on Tuesday, followed by consumer price index inflation data on Thursday.
Employment trends and inflation remain the Federal Reserve’s primary inputs for adjusting interest rates. Any signs of slowing job growth or easing inflation could reinforce expectations for lower borrowing costs.
Lower interest rates typically support speculative assets such as cryptocurrencies, potentially helping Bitcoin recover some recent losses.
The Fed also began purchasing short-term U.S. Treasuries over the past week, increasing liquidity in financial markets. Similar liquidity measures and ultra-low interest rates were key drivers behind the crypto bull market seen in 2021.
Altcoins slide in step with Bitcoin
Losses spread across the broader cryptocurrency market, with major altcoins closely tracking Bitcoin’s weakness.
Ether, the second-largest cryptocurrency by market value, fell more than 6% to around $2,922. XRP dropped nearly 6%, while Solana and Cardano declined 4.2% and 5.7%, respectively. Binance Coin also slipped close to 4%.
Meme tokens were not spared, with Dogecoin falling nearly 6% and the $TRUMP token sliding more than 4%.
Most alternative cryptocurrencies hovered near multi-month lows, reflecting sustained selling pressure across the digital asset space.
Bitcoin and other major cryptocurrencies have also erased much of their gains for 2025, now trading lower for the year following a prolonged selloff that began in mid-October and has yet to show clear signs of reversal.
